USDJPY Market Outlook – Potential Reversal in Play

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Hello Traders,

Here’s a breakdown of a potential bullish setup forming on the JPY chart. Let’s walk through the key technicals:

1. Market Structure:

We initially saw a Break of Structure (BOS), followed by a consolidation phase.

The market formed an ascending channel, which eventually broke down with strong momentum.

A pullback occurred after the drop, but price resumed its downward trend and touched a major support zone.

2. Current Price Action:

Price recently bounced off the lower boundary of the long-term descending channel, indicating potential support.

We are currently seeing signs of a bullish reversal, with higher lows forming.

A minor retracement or consolidation is expected before a potential breakout to the upside.

3. Key Levels to Watch:

Support: 141.812 and 140.205
Resistance: 145.751, 148.322, and final target at 150.935

If price holds above 141.812 and breaks 145.751, we could see a strong continuation to 150+ levels.

4. Strategy:

Watch for a confirmation bounce from 141.812 or a bullish breakout above 145.751.
Consider long positions only after confirmation and manage risk wisely.

This setup reflects potential bullish momentum after a strong correction phase. Stay patient and wait for clean confirmations.

Disclaimer

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