USD/JPY, Technical Analysis – H1

The pair is repeating the pattern of a chaotically expanding megaphone formation, which has been observed previously. It is clearly visible that the overall upward trend remains intact, while deep liquidity sweeps only reinforce the likely control by the bulls. An additional factor is the gap above in the 163.850 zone. Overall, an attempt to update the high in the 164.100–164.200 area can be expected.

Key Levels:

□ 163.850 — Gap above

□ 164.100–164.200 — Target high

□ 163.300–163.700 — Consolidation zone

Primary Scenario:

Growth toward the 164.100–164.200 zone.

Alternative Scenario:

Consolidation within the 163.300–163.700 zone.

Analyst Commentary:

Bullish control was not broken by the latest corrective move.