USDJPY trading recommendation - updated

Since mid-July 2011 USDJPY is consolidating in the area of 75.50-78.25. After arriving near the upper boundary line and downtrend line it bounced down. The decline was stopped around 76.60 in the middle of a large bull candle formed on October 30th.

USDJPY - Weekly chart

After reaching the 76.60 support line USDJPY bounced up.  It reached 77.20 level which resulted in a downward correction.

USDJPY - Daily chart

The rate crossed over the downtrend line. Recent strong upward breakout should result in further growth. The nearest resistance is at 77.20. The support line is 76.85. If the exchange rate will remain above the new uptrend line and 76.85 support , I predict breakout above 77.20 resistance. Then a correction is possible, but the rate should not fall below 77.20. Target level for this movement is 77.60.

USDJPY - H4 chart

Trade recommendation: Buy after closing above 77.20 Take profit level: Target : 77.60

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USDJPY is going up 05.01.2012 - technical analysis and trade recommendation

Last week USDJPY bounced down after reaching the downtrend line. Downward movement was stopped in the area of 76.85. It corresponds to the middle of the big bullish candle formed on October 30. This area was support before, so it seems that now this level is a great place to react and move up.

Rate hit the major support - USDJPY weekly chart

Yesterday on the daily chart small bullish candle with long shadows was formed. It suggested that the downward movement dynamic was depleting.

After hitting the support bullish formation is formed - USDJPY daily chart

Today brought us a dynamic breakout from consolidation in 76.60 – 76.83 area. This currency rate crossed over the downtrend line which was forming since 28’th December . 

The rate has reached the 77.15 area.  I expect some correction now, but decrease should not be deeper than 76.95. Suggested transaction is a buying position after closing above 77.15 with the target of 77.50.

Crossing over downtrend line - USDJPY 4-hours chart

Trade recommendation: Buy after closing above 77.15 Take profit level: Target : 77.50