The USDJPY has formed a Bearish Engulfing Bar (BEEB) on the daily price action chart. This BEEB is formed against the recent up-trend but is rejecting a longer term resistance. For this engulfing bar to have any chance of moving lower and into the near term support level, it will have to break the engulfing bar low and confirm the price action signal.
If price can break the engulfing bar low, the near term support comes in around 101.20. This support area could be a high probability area for traders to look for long trades to get into trades with the recent strong move higher. Price had been caught in months of winding up in this market with price in recent weeks breaking out and making a strong move higher. Trading with this new move higher could be the higher probability play if price continues to print fresh higher highs and higher lows as I discuss in this tutorial here: Forex Price Action Trend Trading.
USDJPY Daily Chart
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