USDJPY H1: The Chaos Theory Forecast for the American Session on 3.1.2025

The review of the USDJPY chart traditionally begins with the analysis of the first dimension of the market. The price has fallen below the lower fractal. It means the phase space is defined as southern. Accordingly, now other market dimensions can be examined to assess the opportunities for trading positions opening.

At the same time, the Awesome Oscillator histogram is currently above the zero line.
The AC indicator has formed the green bars above the zero level. This is a signal that the downward movement is losing strength locally. However, the southern movement scenario is relevant as long as the price remains below the Alligator’s red line.
As it is seen the AC and AO indicators are green. There is a sign of a correction developing or of a local trend changing. The strength and energy of the downward movement are experiencing deceleration, but the price remains below the red Alligator line. That's why a downward movement is still a priority.
The color of the histograms of the Gator indicator changes, so this indicator has not formed a clear signal yet.
To sum up, the phase space is noted to be southern, but the indicators show a signal about the possible development of a pullback movement. This possibility can be used to find entry points in the direction of the main movement at more beneficial prices.
📊 Sell Stop 157.021
❌ Stop Loss 157.315
After entering the market, Stop Loss is moved along the red line after closing each candle. The profit is fixed by moving Stop Loss, or when opposite signals appear on the AO, AC, Gator indicators.