The USD/JPY pair bounced from our identified support zone on a 4 hour time frame. The support zone was given in our analysis on the 18th April. The risk mentioned was 51 pips and the price moved in all the way to 109.32 which represents a potential profit of 108 pips. This is more than one to one risk to reward ratio which many traders seeks in for a day trading. The price is still trading below the downward trend line and this reflects that the trend is biased towards the downside.
The price is trading within the Bollinger band and it is trading above the 50 day moving average (shown in yellow and the price is 108.65 ) but still below the 100 day moving average (shown in red and the price is 110.17) and this confirms that the bears are losing their control.
The reading for the Bollinger the upper and lower bands are 109.87 and 108.00 respectively.
The RSI is trading at 54 and this may push the price higher.
by Naeem Aslam