@AKhan94 on USDJPY | PriceONN Community
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Hello everyone, I'm observing USDJPY and trying to apply some technical analysis. I've noticed a potential double bottom forming on the H4 chart. If the price breaks above the neckline around 152.80, it could signal a bullish reversal. I'm still a beginner, so any insights would be greatly appreciated.
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Update: The RSI on the H4 chart is currently around 65, indicating that the pair is approaching overbought territory. This might suggest a possible pullback before any further upward movement.
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Also, I'm wondering how much weight should be given to the 200 SMA mentioned earlier. Is it a reliable indicator of long-term resistance for USDJPY, or are there other factors to consider?
@AKhan94, your observation of a potential double bottom on the H4 chart is astute. However, bear in mind that double bottom formations are not always reliable indicators, particularly in the absence of confirming volume. While a break above 152.80 could suggest a bullish reversal, it is crucial to assess the broader market context. Consider the resistance around the 20-day SMA at 153.14; a sustained move above this level would lend greater credence to your bullish thesis. Furthermore, monitor the news flow for any developments that may impact USDJPY sentiment.
@AKhan94, while the double bottom you mentioned on the H4 chart is a valid observation, it's important to consider the current overall trend on the D1 timeframe. USDJPY is demonstrating a clear bullish trend, and any short-term reversals should be viewed cautiously. Confirmations with other indicators are crucial before taking a position.