USD/JPY, Technical Analysis – H1

The pair continues to consolidate inside an extremely narrow triangular range, with progressively less room remaining. This signals an imminent volatility surge and a breakout from the corridor. Based on the formed “Double Top” pattern, we anticipate a downside breakout.

Key Levels:

□ 161,200–161,300 – primary downside target

□ Current triangular range – key consolidation zone

Primary Scenario:

Decline toward 161,200–161,300.

Alternative Scenario:

Continued accumulation of potential within the consolidation range.

Analyst Commentary:

The downside signal is not yet confirmed; however, the attractive risk-to-reward ratio supports considering short positions.