USD/JPY – Technical Analysis (H1)
The local bullish structure in USD/JPY looks unconvincing, with rounded tops pointing to possible exhaustion. A decline toward the 158.500 balance support remains the preferred scenario.
The local bullish structure (which is in reality only part of a larger corrective upward move rather than an independent trend) appears highly unconvincing. New highs are forming rounded tops, which may signal exhaustion. As a result, another decline toward the balance support at 158.500 can be expected.
Key Levels:
- 158.500 – balance support / primary downside target
- 159.700 – potential new local high
Primary Scenario:
Decline toward 158.500.
Alternative Scenario:
Formation of a new local extreme near 159.700, followed by a reversal lower toward 158.500.
Analyst Commentary:
It is preferable to wait for confirming signals. Keep in mind the “Friday factor” as well — markets tend to quiet down ahead of the weekend.
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.