Pair and Technical Analysis
On the Daily USD.JPY chart the market is currently ranging between strong resistance at MM4 and strong support at MS1 / MM1. Currently trading the range by buying at support and selling at resistance is the least risky trade. As it stands, buying now at 109 and taking profit at 114 would be a safe trade. Being a bull on this pair, the market is expected to break resistance at some point. Bulls will be looking out for a break through resistance where a possible double bottom is currently forming. In the case of a break through resistance a possible target for roles reversal will be MR2 and MR3 for profit taking.
On the H4 chart the double bottom is unconfirmed. A head and shoulder reversal pattern could be forming with a strong resistance still at WM2. This is currently a good place to buy at support with profit taking at WM4 where strong resistance is currently. If there is however upwards movement through resistance at 111.500, then this trade could very well be left open to take profit at the HH.