Fundamental analysis

Trading plan for USD/JPY on November 4, 2022

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Technical outlook:

USD/JPY has been drifting sideways since dropping to 145.50 around October 23, 2022. Consolidation could be into its last leg before prices break lower towards 142.00 in the near term. The currency pair is seen to be trading close to the 148.00 mark at this point in writing, which could be a resistance zone to trigger a huge sell-off.

USD/JPY has carved higher highs and higher lows from the 130.30 mark since August 2, 2022. The price broke below its immediate trend line support while carving its first bearish boundary in the range between 151.90 and 145.00-50. The price also tested the backside of its support trend line, which should act as strong resistance.

USD/JPY is facing strong resistance around 149.00-50, followed by 152.00, while interim support is seen around 145.00-10. There is a high probability that the quote will turn lower towards 141.00 and up to 135.00 in the coming trading sessions. Only a consistent break above 152.00 will nullify the above structure.

Trading plan:

Potential drop to 141.00 against 152.00

Good luck!

The material has been provided by InstaForex Company –