The USD/JPY pair is showing an interesting setup on the 4-hour chart—here’s what to watch:
1️⃣ Ascending Channel in Play: The pair is trending within a bullish channel, signaling an overall upward momentum. Traders should keep an eye on this structure for potential opportunities.
2️⃣ Support Zone Under Test: Price action is near the critical blue-shaded support area at 149.815. This level has historically held as a strong rebound zone. Buyer activity here could determine the next move!
3️⃣ Potential Scenarios:
Bullish Case: A strong bounce from the support zone could propel the price higher, maintaining the channel’s bullish trend.
Bearish Case: A failure to hold the support level may lead to further declines, possibly testing the lower boundary of the channel.
Insights for Traders: Patience is key—monitor the 149.815 zone for signals before committing to a trade. The combination of price patterns and volume data will provide clarity.