USD/JPY at a Crossroads: Deeper Decline or Bullish Reversal?

[Forum Admin]

 USD/JPY at a Crossroads: Deeper Decline or Bullish Reversal?

 

 
The key support and resistance level ahead for USD/JPY is as follows:

•Third Key resistance level of USD/JPY: 149.250
• Second Key resistance level of USD/JPY: 148.500
• First key resistance level of USD/JPY: 148.111
• First key support level of USD/JPY: 147.299
• Second Key support level of USD/JPY: 146.500
•Third Key support level of USD/JPY: 145.150
 
USD/JPY at the Beginning of a Heavy Decline
 
With the recent price drop over the past few months, this popular currency pair has finally entered a correction phase, distancing itself from its previous unstoppable upward momentum.

The USD/JPY chart has been downward over the past two months, during which sellers have achieved the lowest price level of 146.536.

Considering the nature of price movements observed in longer timeframes, such as monthly and weekly, the chart still holds the potential for further price correction. The key condition for this scenario would be the breakdown of the 146.500 support level. If this occurs, the price could decline further, reaching 145.150.

In shorter timeframes, such as daily and 4-hour charts, the price is currently positioned at the support edge of a descending channel pattern (analyzing candle behavior could be helpful). Additionally, between the price peak of 158.900 and the low of 146.536, a harmonic AB=CD pattern with ideal ratios of 50=200 has formed. If the D point completes, a bullish reversal may follow.

In the bullish scenario, if the 146.500 support level holds, the price has the potential to start a rally toward resistance levels at 148.500 and, in a stronger upward movement, up to 149.250.
 

Trade USD/JPY on CloseOption 1.000$ Weekly Free Entry Trading Contest