USD/JPY Technical Analysis – H4

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.