Title
USDJPY H4 | Hidden Bullish Divergence
Type
Bullish Bounce
Preference:
Price has just bounced off our pivot at 133.449 which is a multi swing low support level. A bounce from here, price could push up to 1st resistance at 135.102 which is a pullback resistance that lines up with 38.2% Fibonacci retracement
Alternative scenario:
However, if price breaks below the pivot, it could drop to 1st support at 132.012 which is a multi swing low support level.
Additionally, the RSI is also displaying hidden bullish divergence versus price, suggesting that there could be a rapid incline in price. This is further confirmation of the potential for a bullish move in the near future.
Also, price is in a bullish ascending channel which suggests that the price might continue to rise due to its bullish momentum.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.