USD/JPY, Technical Analysis – H1

Bears successfully defended the local low, thereby preserving the ascending corrective structure. A full-scale decline is likely to materialize only after liquidity is tested in the 160.55–160.60 zone.

Key Levels:

◻️ 160.00 (key support)

◻️ 160.55–160.60 (liquidity/resistance zone)

Primary Scenario:

Advance toward 160.55–160.60, followed by a bearish reversal targeting 160.00.

Alternative Scenario:

A liquidity sweep above 160.60 (short squeeze), potentially extending the corrective rally before any meaningful downside develops.

Analyst Commentary:

Placing pending sell orders around the 160.55–160.60 zone appears reasonable, but traders should not rule out a squeeze through this area.