USD/JPY Price Analysis: Bulls await a break of critical 4-hour resistance

• USD/JPY have the pair on their watchlist in anticipation of newly formed bullish structure emerging on the lower time frames.
• A daily extension is on the cards to test deeper into the recently formed monthly resistance structure. 

USD/JPY is moving in a bullish trajectory on the lower time frames in a correction of the latest bearish retracement of the daily bullish impulse. 

The following is a top-down analysis that illustrates where the next trading setup could emerge from the next series of 4-hour candles and price action. 

Monthly chart

The monthly chart offers a bearish bias with the pair breaking the support and now retesting the structure. 

Weekly chart

The weekly chart offers a bullish bias with the price above prior resistance and testing the structure as support.

Daily chart

The market has pulled into a deep retracement on the Fibonacci scale and the price would now be expected to extend deeper into the monthly resistance at this juncture. 

4-hour chart

The price needs to break the overhead resistance which will pull the chart into a technically buillish environment, creating a bullish structure from which to be long from.