The USD / JPY pair has formed a double bottom pattern at the 109.10 level. On August 16, it made the first touch and yesterday, September 15, it made a second touch at the same support level. Now from this point, the pair is rebounding and could continue its upward movement in the next few hours.
Yesterday, we saw a sharp fall, after breaking the strong critical support of 109.70. Today, it has been consolidating in the European session above 109.10. Shortly, the American market will open and we believe that if the US dollar continues to strengthen, USD/JPY could rise to the resistance of 109.76 and up to the 200 EMA located at 109.88.
At the time of writing, the Japanese Yen is trading above 0/8 of murray at 109.35. This is a bullish sign, so at this point it will be a good opportunity to buy with targets at the 200 EMA around 109.88.
Conversely, if the Japanese yen makes a technical bounce at support of 109.11, it will be a good opportunity to buy at low price with targets at 109.37, 109.76 and up to the 200 EMA at 109.88.
The pair has got stuck within a consolidation period for almost a month inside the range of 110.40 to 109.60. Now it is below this level and below the 200 EMA. This could be a bearish sign. As long as the pair continues to trade below 109.90, it will be a good opportunity to sell.
The market sentiment report shows 61.99% of traders who are buying the USD / JPY pair. This is a bearish sign for the pair that could continue its decline to the level of 108.59.
The technical reading of the eagle indicator in 4-hour charts is showing a bullish signal. The market volume is expanding, this could support our bullish outlook.
Support and Resistance Levels for September 16 - 17, 2021
Resistance (3) 109.98
Resistance (2) 109.76
Resistance (1) 109.53
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Support (1) 109.16
Support (2) 108.98
Support (3) 108.70
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Trading tip for USD/JPY for September 16 - 17, 2021
Buy if the pair rebounds at 109.11 with take profit at 109.37 and 109.76 (1/8), stop loss below 108.79.
Buy above 109.37 with take profit at 109.76 and 109.88 (EMA 200), stop loss below 108.98.
The material has been provided by InstaForex Company - www.instaforex.com