USD/JPY, Technical Analysis – H4

Despite the sharp sell-off, bulls have so far managed to defend support near the trendline. The market likely requires a technical upward retracement to confirm reversal potential. A retest of the 162.000 and 162.600 levels (depending on remaining bullish strength) is expected. Short signals forming at these levels are likely to carry higher probability.

Key Levels:

□ 162.000  

□ 162.600  

Primary Scenario:

Upward retracement toward 162.000, followed by a downward reversal.

Alternative Scenario:

Break above 162.000, targeting 162.600.

Analyst Commentary:

Given it is Friday (with markets preparing to exit for the weekend) and reduced liquidity due to the U.S. holiday, profit-taking by sellers may support the development of the corrective move.