USD/JPY, Technical Analysis – H4
Despite the sharp sell-off, bulls have so far managed to defend support near the trendline.
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.
Nikolai Krishtopov is a Market Analyst at Investizo with more than 15 years of experience in the financial markets industry and over a decade of trading experience. His areas of focus include forex and crypto markets, technical analysis, intraday trading and market behaviour.