USD/JPY Price Analysis: Bulls spike to critical 114.30 resistance
- USD/JPY bulls taking charge to test the first layer of resistance.
- Bulls need to commit at this juncture or face headwinds all the way back to 114.06.
As per the prior analysis, USD/JPY: More bullish daily confluences you can shake a candlestick at, the pair is demonstrating bullish vigour as the Tokyo session picks up in terms of volatility.
The following illustrates the prospects of a run all the way to the cycle highs near 114.70 for the sessions ahead:
USD/JPY prior daily chart analysis
It was stated, on the above analysis, that ''on the daily time frame, we have multiple confluences of bullish signals. 1. Three line strike which is a reversal pattern. This is a bullish engulfing candle that was printed on November 10. 2. Inverse head and shoulders which is a bullish formation as well. 3. And lastly, Monday's bullish engulfing candle, (albeit with 10 mins left to go until the daily close).''
Meanwhile, on the lower time frames, the price is attempting to break out of the daily neckline as follows:
The price has rallied in 16 pips in a flash but has stalled at the first line of resistance in the high of 114.31. A break there will see bulls move in on the early Nov highs which guard a run all the way to the 2021 highs at 114.70. However, if the bulls do not commit at this juncture, then the daily trendline resistance and Friday's opening level at 114.06 could come under pressure again.