Daily chart: The USDJPY pair is finding strong support in the secondary bullish trend line, we can see it on the graph. Last week, the USDJPY pair had a slightly bearish day, breaking the support level at 100.94 and now is approaching the support at the 99.81 level. It is very possible that this pair drops to this support and make a bullish rebound to resistance at 100.94 level. However, if the USDJPY pair breaks this secondary bullish trend line and support at 99.81 level, it is expected to fall to support at the 98.28 level, where there is also a line of primary bullish trend. At the current price of this pair, there is a fractal doing support on this pair, so it would be possible to see bullish rebounds in the coming days in this pair. The MACD indicator is in negative territory, but approaching to oversold levels.
H4 chart: In this chart, the USDJPY pair left a wide-range bearish candlestick below the resistance at 102.38 level and fell, to break the bullish trend line near the 101.35 level. Now, this pair is trying to break the support that is doing the moving average of 200 day, but it is likely that the USDJPY pair will make a bullish rebound above this SMA 200 and rise again, until the resistance in the 101.30 level. On the other hand, if the USDJPY pair breaks the support level at 99.93, it is expected to fall to the level of 98.38, in the medium term. The MACD indicator remains in negative territory, approaching oversold levels.
H1 chart: Currently, trading this pair becomes very difficult to interpret, when we try to analyze this chart from technical point of view. The trend in this chart is purely bearish, because the pair is below the 200-day moving average, which tried to break up last week, but it failed and formed a fractal, close to the resistance in 101.94 level. Now, it has formed a strong Point of Control (POC) above the resistance at 100.79 level. This POC produces high volatility in this pair and will be very difficult for the USDJPY pair try to break the resistance that formed this POC and dynamic resistance offered by the 200-day moving average. If the USDJPY pair breaks the support at the level of 100.31, it is expected to drop to the level of 99.87. On the other hand, if the pair breaks the resistance level at 101.32, which would be expected to rise to the level of 101.94. The MACD indicator is in neutral territory, so we recommend caution when doing intraday trading this pair.
Fundamental Outlook: For today's session at 14:00 GMT in the United States ISM Manufacturing PMI (Previous: 50.7 / Forecast: 50.6) will be pulished. If the current reading is lower than the forecast, the USDJPY pair could make bearish movements during the hour.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the USDJPY pair breaks with a bearish candlestick, the support level is at 99.61, take profit is at 98.85, and stop loss is at 100.32.
