USDJPY’s price action has shifted, raising questions about the future direction of the currency pair. This analysis examines the technical situation and explores potential scenarios.
USDJPY Breaks Key Levels
Uptrend Faces Hurdle: A key technical development is the break below the rising trend line on the 4-hour chart and the crucial support level at 153.58. This suggests a potential completion of the upside move that began at 146.47 and reached a high of 160.21.
Potential Scenarios
Further Decline Likely: In the coming days, further decline is still possible with the next target zone potentially reaching the 151.50 area.
Initial Resistance: The initial hurdle to watch on the upside is at 156.30. A break above this level could trigger a temporary upside correction towards 158.00.
Upside Potential Limited: Even if the price surpasses 158.00, a significant rise above 159.40 is less likely in the short term due to the overall downtrend signal.
Overall SentimentThe technical outlook for USDJPY has turned bearish in the short term. The break below the trend line and support level suggests a potential downtrend. While a short-term bounce towards 156.30 or even 158.00 is possible, overcoming 159.40 seems unlikely in this scenario.More By This Author:USDCHF Charges Higher: Uptrend Confirmed Or Further Gains Ahead?USDCAD Stalls At Resistance: Downtrend To Resume Or Uptrend Signal? USDJPY: Uptrend On Hold Or Correction Incoming?
