USD/JPY – Technical Analysis (H1)
USD/JPY has staged a local sell-off after forming a double top, echoing past Bank of Japan intervention patterns. The pair now sits at a critical juncture between a fresh push toward 160.000 and further downside to 158.000.
The pair has experienced a local sell-off, yet a similar picture was observed during the Bank of Japan’s landmark intervention. Price subsequently resumed its advance and posted a new high. There are almost no fundamental reasons to expect the uptrend to fail this time. The caveat is important: the latest sharp correction was driven by the formation of a double top — a relatively strong reversal signal that cannot be ignored.
Key Levels:
□ 1. Psychological resistance: 160.000
□ 2. Downside target: 158.000
Primary Scenario:
Transition into a new upward wave targeting the round psychological level of 160.000.
Alternative Scenario:
Continuation of the decline toward 158.000.
Analyst Commentary:
Wait for confirming signals before committing to either scenario.
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.