empty
12.07.2022 03:03 PM
Trading plan for USDJPY on July 12, 2022

This image is no longer relevant

Technical outlook:

USDJPY climbed above a fresh swing high at around 137.75 on Monday before hitting resistance and pulling back later on. The currency pair has slipped over 100 pips and is trading close to 136.75 at this point in writing and could slip below the 134.80 initial support to confirm a major top. Also, note that immediate trendline support would break below 134.80, which is encouraging for bears.

USDJPY has produced a meaningful larger-degree upswing, which began from the 102.59 lows since January 06, 2021. The currency pair has remainied in control of bulls for 18 months now in a row as the uptrend might have terminated at around 137.75. We still need confirmation for a further price action. A break below 134.80 will be the first step towards a deeper correction.

USDJPY was trading sideways within a tight range between 135.00 and 136.50 for quite a few trading sessions before breaking higher and producing the final thrust wave towards 137.75. Ideally, if a top is in place, prices should produce a sharp reversal towards 134.80 from current levels. Bears remain inclined to be in control from here provided prices stay below 137.75.

Going forward:

USDJPY has been accompanied by a strong bearish divergence on the 4H RSI as seen on the chart here. Since June 21, 2022, each high has produced a lower RSI as seen here, which is a strong potential bearish reversal signal. Also, note that bears are now targeting the 124.00-50 zone in the next several weeks, the Fibonacci 0.382 retracement of the entire rally between 102.59 and 137.75.

Trading plan:

Potential drop towards 124.50 against 138.50

Good luck!

Oscar Ton,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

GBP/USD: Trading Plan for the U.S. Session on July 7th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.3602 level and planned to use it to determine entry points into the market. Let's look at the 5-minute chart and analyze what

Miroslaw Bawulski 13:21 2025-07-07 UTC+2

EUR/USD: Trading Plan for the U.S. Session on July 7th (Review of the Morning Trades)

In my morning forecast, I highlighted the 1.1749 level and planned to base market entry decisions around it. Let's look at the 5-minute chart and break down what happened

Miroslaw Bawulski 13:20 2025-07-07 UTC+2

How to Trade the GBP/USD Currency Pair on July 7th? Simple Tips and Trade Review for Beginners

On Friday, the GBP/USD pair showed total flat movement and low volatility. As with the EUR/USD pair, there was no news that day, and no macroeconomic publications were released either

Paolo Greco 07:48 2025-07-07 UTC+2

How to Trade the EUR/USD Currency Pair on July 7th: Simple Tips and Trade Analysis for Beginners

Friday Trade Analysis: EUR/USD 1H Chart The EUR/USD pair stayed flat all day Friday, with volatility totaling 36 points, clearly indicating a lack of trading activity. This is not surprising

Paolo Greco 07:32 2025-07-07 UTC+2

GBP/USD Trading Recommendations and Trade Analysis for July 7th

The GBP/USD currency pair traded with low volatility and primarily moved sideways. As mentioned earlier, last week was particularly interesting in how the market interpreted various events and publications

Paolo Greco 07:11 2025-07-07 UTC+2

EUR/USD Trading Recommendations and Trade Analysis for July 7th

The EUR/USD currency pair did not exhibit any notable movements on Friday—or any movements at all. Friday was Independence Day in the United States, effectively making it a non-trading

Paolo Greco 07:03 2025-07-07 UTC+2

GBP/USD: Trading Plan for the U.S. Session on July 4th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.3672 level as a key decision point for entering the market. Let's look at the 5-minute chart and analyze what happened. A rise

Miroslaw Bawulski 18:20 2025-07-04 UTC+2

EUR/USD: Trading Plan for the U.S. Session on July 4th (Review of Morning Trades)

In my morning forecast, I highlighted the 1.1787 level as a key point for making trading decisions. Let's look at the 5-minute chart to analyze what happened. A rise

Miroslaw Bawulski 18:16 2025-07-04 UTC+2

How to Trade the GBP/USD Pair on July 4? Simple Tips and Trade Analysis for Beginners

Analysis of Thursday's Trades 1H Chart of GBP/USD On Thursday, the GBP/USD pair once again plummeted, but this time the drop in the British currency lasted only five minutes

Paolo Greco 07:16 2025-07-04 UTC+2

How to Trade the EUR/USD Pair on July 4? Simple Tips and Trade Analysis for Beginners

Analysis of Thursday's Trades 1H Chart of EUR/USD The EUR/USD currency pair traded throughout Thursday, both before and after the publication of the U.S. Nonfarm Payrolls and unemployment data

Paolo Greco 06:34 2025-07-04 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.