USD/JPY Technical Analysis – H4
USD/JPY’s upward correction is approaching a strong resistance zone at 159.00–159.50, from which renewed selling is highly probable. Patience for a confirmation signal is advised given the zone’s width.
The primary question for traders is the potential height of the current upward correction. We expect the strong resistance zone at 159.00–159.50 to act as the ceiling. There is a very high probability of renewed selling pressure from this area.
Key Levels:
□ 159.00
□ 159.50
Primary Scenario:
Advance toward 159.00, followed by a reversal lower.
Alternative Scenario:
A more extended correction toward 159.50, then a reversal lower.
Analyst Commentary:
Given the 50-pip width of the target zone, an entry “on touch” is likely to prove problematic. Traders should therefore wait for a clear confirming signal before acting.
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.