USD/JPY Bullish Reversal Setup: Key Levels and Targets
The USD/JPY chart on the 4-hour timeframe indicates a potential bullish setup. Here's a breakdown of the analysis:
1. Support Zone & Trendline Confluence**
- Price is currently reacting to a strong demand zone** around 149.000–149.500, marked in green.
- There's also a visible ascending trendline acting as dynamic support, reinforcing the bullish outlook.
2. Change of Character (ChoCH) & Break of Structure (BOS)
- A series of **bearish BOS and ChoCH confirm the prior downtrend.
- However, the most recent ChoCH to the upside signals a potential shift in market direction.
3. Target Zone & Resistance Area
- The next resistance zone** is marked around 152.000, aligning with a supply area.
- This is also the short-term bullish target, as indicated on the chart.
4. Potential Trade Setup
- If the price holds above the demand zone and breaks the minor resistance at 150.000, bullish momentum could push it toward 152.000.
- A higher low formation** would further confirm bullish continuation.
5. Risk Factors
- A break below the **strong low (148.800–149.000) could invalidate the bullish setup and signal further downside.
Conclusion
USD/JPY is showing signs of a potential bullish reversal. If price respects the support and trendline, it could rally toward 152.000. However, a breakdown below 149.000 would invalidate the bullish bias.
1. Support Zone & Trendline Confluence**
- Price is currently reacting to a strong demand zone** around 149.000–149.500, marked in green.
- There's also a visible ascending trendline acting as dynamic support, reinforcing the bullish outlook.
2. Change of Character (ChoCH) & Break of Structure (BOS)
- A series of **bearish BOS and ChoCH confirm the prior downtrend.
- However, the most recent ChoCH to the upside signals a potential shift in market direction.
3. Target Zone & Resistance Area
- The next resistance zone** is marked around 152.000, aligning with a supply area.
- This is also the short-term bullish target, as indicated on the chart.
4. Potential Trade Setup
- If the price holds above the demand zone and breaks the minor resistance at 150.000, bullish momentum could push it toward 152.000.
- A higher low formation** would further confirm bullish continuation.
5. Risk Factors
- A break below the **strong low (148.800–149.000) could invalidate the bullish setup and signal further downside.
Conclusion
USD/JPY is showing signs of a potential bullish reversal. If price respects the support and trendline, it could rally toward 152.000. However, a breakdown below 149.000 would invalidate the bullish bias.
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Disclaimer
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If you want to receive more Analysis signals, please join our Telegram channel. t.me/+JLFlD0eg3LFjNjU8
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.