USD/JPY, Technical Analysis – H4

A potential shift of initiative to the sellers will be confirmed upon a breakout and consolidation below the support at 160.20. In this case, a strong sell-off wave may develop from the previous high area (160.35) toward liquidity in the 159.60 zone.

Key Levels: 

□ 160.20 (key support)  

□ 160.35 (local resistance / previous high)  

□ 159.60 (downside liquidity target)

? Primary Scenario: 

Decline toward 159.60.

? Alternative Scenario:

Return to 160.35, followed by a downward reversal toward 159.60.

⚖️ Analyst Commentary:

Realization of this scenario could trigger similar developments on the next higher timeframe, significantly expanding potential targets for short positions during the current trading week.