10.06.202207:36 Forex Analysis & Reviews: Trading plan for USD/JPY for June 10, 2022

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Technical outlook:

USD/JPY tried to break through 134.55, the recent swing high reached early this week but failed. Prices reversed from 134.47 on early Friday. It is seen to be trading close to 133.85 at this point in writing. It is expected to drag further lower from here. Bears are inclined to hold prices below the 134.55 mark to keep the structure intact.

USD/JPY has produced a straight rally after terminating around the 102.00 mark and breaking out of its triangle consolidation above the 116.00-30 zone. It might have terminated around 134.55 early this week and ideally preparing for a corrective decline. If the above structure unfolds accordingly, bears will be poised to break below 126.36 support in the near term.

USD/JPY might be preparing to produce an Evening Star reversal pattern on the daily chart (not shown here). A drop/close below 132.40-50 will confirm the bearish pattern and potential trend reversal. Aggressive traders might open fresh short positions now with risk above 135.50 and potential near-term targets around 132.40 and 126.30 respectively.

Trading plan:

Potential drop to 126.30, against 135.50

Good luck!

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