FX.co ★ remington.kihn | USD/JPY

Greetings, colleagues. The USD/JPY currency pair on the daily timeframe is now showing a very illustrative picture. After a powerful collapse of the quotes from above, sellers have taken a small pause. The USD/JPY price has found local support. The bulls are trying to form a small pullback upward from the current lows. This local rebound is clearly visible on the chart. However, the overall picture indicates that this move is nearing completion. The global trendline from below is still holding the market. USD/JPY quotes are simply correcting before the resumption of the global uptrend. The main medium-term initiative remains with the buyers. The current dump is just a deep pullback. Let’s assess the situation through horizontal market volumes. The main volume shelf remains far at the top of the range. The largest POC accumulation is spread around the highs at 162.400 - 163.500. That’s where the big player is trying to push the price back to. Right now, USD/JPY quotes are squeezed between important levels. From above we are limited by the resistance at 157.597. The bulls have run into this barrier. From below, the pair is being pressed by a strong ascending trendline in the 155.900 - 156.020 area. Our indicator panel is currently in oversold territory. Oscillators are ready to turn upward. We are looking at the completion of the local dump. I expect a resumption of strong USD/JPY growth after the correction ends. My first target for taking profit on longs is at 157.597. If the bulls confidently break through this level, quotes will move higher toward 158.700 and 159.110. I will be going long on USD/JPY. I’m looking for an entry point on lower timeframes near the trendline. I’ll hide my stop behind the local low of the dump around 155.500. I’m not considering shorts now; that would be trading against the global trend. We are being shown a classic test of dynamic support.