- USD / JPY drew a bullish outside candle on the daily chart on Monday.
- The pair could soon challenge the November 24 high.
USD / JPY is moving higher on Tuesday and approaching the 104.50 level during the Asian session on Tuesday after having drawn a bullish outer candle on the daily chart on Monday.
A bullish outer candle occurs when an asset engulfs the previous day’s trading range with positive price action. Investors see the bullish outside day as the harbinger of more substantial gains.
The candle is more relevant in this case, as it has occurred at the trend line support rising from the lows of November 10 and 23.
The pair could challenge resistance at 104.76 (Nov 24 low) this week. A breakout of that level would expose the November 11 high of 105.68.
On the other hand, a close below Monday’s low of 103.83 would invalidate the bullish bias.
USD / JPY daily chart
USD / JPY technical levels