USD/JPY, Technical Analysis – H4

The pair has tested the supply zone at 162,700, which can be viewed as the formal completion of the corrective phase ahead of the main downward movement. Bears are expected to target the 161,500–161,600 area.

Key Levels:

□ 162,700 – Key resistance / tested supply zone

□ 161,500–161,600 – Primary downside target

Primary Scenario:

Initiation of a decline toward 161,500–161,600.

Alternative Scenario:

Prolonged consolidation below 162,700.

Analyst Commentary:

The downside trend reversal pattern currently appears reliable.