USDJPY - 15 mins BuyChart Patterns and Observations
Falling Wedge:
A clear falling wedge pattern is evident, which is a bullish reversal pattern. This aligns with the marked Bottom 1, Bottom 2, and Bottom 3 zones.
The breakout above the wedge suggests a shift from bearish to bullish sentiment.
Accumulation Zone:
Price consolidates within a narrow range (noted as an accumulation area), indicating that buyers may be stepping in to create a base for a potential upside move.
The marked Target Re-Entry Zone at 153.888 serves as a possible demand zone for a retest.
Key Levels:
Support Levels:
153.807 (Bottom 3) is a critical support where the falling wedge's final bottom was formed.
153.943, which aligns with the retest zone, is another key area to watch for bullish rejections.
Resistance Levels:
Immediate resistance is noted at 154.187.
The next target lies at 154.478 (Asian High), followed by Fibonacci extensions at 155.01 and 155.13, which serve as stretch targets.
Indicators:
RSI:
RSI is gradually trending higher from oversold levels, suggesting increasing bullish momentum.
A break above the midline (50) will further confirm the bullish continuation.
MACD:
The MACD histogram is printing green bars, indicating bullish momentum building.
The signal line crossover supports the potential for upside movement.
Stochastic Oscillator:
Stochastic is rebounding from oversold territory and approaching the upper range, which supports short-term bullish pressure.
Risk-Reward and Breakout:
The price has broken out above the wedge and is trading near 154.10.
The stop loss is placed below 153.807 to protect against invalidation of the setup.
Buy Setup Explanation
Entry:
The marked buy zone appears to capitalize on a potential pullback to the Target Re-Entry Zone at 153.943.
This is a common strategy to re-enter after a breakout, ensuring minimal risk exposure.
Stop Loss:
The stop loss is placed below the 153.486 level (below the third bottom of the falling wedge), ensuring safety against a false breakout.
Take Profit:
First Target: 154.724, the immediate resistance zone.
Second Target: 155.022, aligning with the Asian session high.
Extended Targets: Fibonacci levels at 155.01 (1.809 Fib extension) and 155.13 (R2).
