USD/JPY, H4

On the four-hour chart, the USD/JPY pair is moving within an uptrend, renewing local highs and holding at 161.65 during morning trading. Around 161.14, the Bull Engulfing Pattern, Bull Counterattack Line, and Hammer candlestick patterns formed, signaling continued pressure on the price from buyers, who will most likely attempt to consolidate the price above the resistance level of 162.69 soon, which will serve as a driver for movement to 165.85–168.37. After decline and reversal, it may reach 158.42 and the area of 154.71–151.83.

USD/JPY, D1

On the daily chart, the upward trend continuation pattern Rising Three Methods is forming at 158.42, and the candlestick analysis Dragonfly Doji is developing above 159.92, confirming the continued uncertainty in the market and the presence of the “bullish” potential. However, at the tops, the Dragonfly Doji pattern can signal a trend reversal, but additional signals are needed. Most likely, the asset will grow to the resistance level of 162.69 and after breakout – to the area of ​​165.85–168.37.

Support and resistance

Resistance levels: 162.69, 165.85, 168.37.

Support levels: 158.42, 154.71, 151.83.

Trading tips

Long positions may be opened above 162.69, with the targets at 165.85, 168.37. Stop loss — 161.14. Implementation period: 7 days or more.

Short positions may be opened below 158.42, with the targets at 154.71, 151.83. Stop loss — 159.92.