USD/JPY, Technical Analysis – H4
USD/JPY remains poised for a bearish reversal from the 162,600 supply zone. A test of this level followed by rejection could trigger a ~200-pip decline toward 160,700 support.
We continue to anticipate a downward reversal from the supply zone at 162,600. However, the pair has not yet tested this level, which remains a key prerequisite for activating the bearish scenario. The potential decline extends nearly 200 pips, targeting the support at 160,700.
Key Levels:
□ 162,600 — Supply zone
□ 160,700 — Key support
Primary Scenario:
Rise toward 162,600, followed by a sharp reversal and decline to 160,700.
Alternative Scenario:
Continued consolidation below 162,600.
Analyst Commentary:
We observe a strong inverse correlation with EUR/USD when the downside signal forms. This correlation significantly increases the probability of a successful trade.
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.