USD/JPY, Technical Analysis – H4

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.