Daily chart: The USD/JPY has failed to rise to the resistance level at 100.94 and now this pair has dropped to support at the 99.81 level. Recall that the 100.00 psychological level is very strong, so that the reversal in the USD/JPY is very normal and this could be the formation of a lower high pattern. However, if the USD/JPY breaks the support at the level of 99.81, it's expected to drop to the level of 98.25. On the other hand, if the USD/JPY manages to break the resistance level at 100.94, it is likely to rise to the level of 102.12. The MACD indicator is showing weakness in the current bullish trend, but remains in positive territory todvia and approaching overbought levels.
H4 chart: The USD/JPY has made some interesting patterns indicating possible change in trend. However, the USD/JPY still remains above the 200 day moving average, so our bullish outlook remains valid. However, if the USD/JPY manages to break the resistance at 100.74 level, it is likely to rise to the level of 101.30. Furthermore, if the USD/JPY achieves in breaking the support level of 99.05, it's expected to drop to the level of 97.00, below the SMA 200. The MACD indicator remains in negative territory.
H1 chart: This pair found strong support at the 99.87 level. Near that level, it has formed a Point of Control (POC) by strong support in this pair and strengthening the USD/JPY bullish trend. If this pair manages to break the resistance level of 100.31, it is expected to rise to the level of 100.79. On the other hand, if the USD/JPY manages to break the support at the 99.42 level, it is seen to fall to the level of 98.85, which houses the 200 day moving average. The MACD indicator remains in positive territory.
Fundamental outlook: For today's meeting, BOJ Gov Kuroda will speak and this could create some volatility in the USD/JPY. On the other hand, in the United States will be festive for Independence Day, so the banks will be closed all day.
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD/JPY pair breaks with a bullish candlestick, the resistance level is at 100.31, take profit is at 100.79, and stop loss is at 99.85.
