Monday, July 08, 2024

USD/JPY in Consolidation Phase as it Retreats from High

 The USD/JPY pair is currently experiencing a pullback from its recent peak of 161.95. This retreat has resulted in a break below the bottom of the rising price channel on the 4-hour chart, indicating that a consolidation phase is now underway for the uptrend originating from the low point of 151.86 on May 3.


Support and resistance levels

As the pair continues its consolidation, it is currently encountering a support level at 160.26. Should the price break below this level, it may trigger a further downside movement towards the 158.00 area.

On the other hand, the initial resistance is situated at 161.40. If the price manages to break above this level, it could signal a resumption of the uptrend. The next target levels to watch for would be the previous high at 161.95, followed by the 163.00 area.

In summary, the USD/JPY pair is currently in a consolidation phase after pulling back from its recent high. Traders should keep an eye on the support level at 160.26 for signs of further downside movement or watch for a breakout above the resistance level at 161.40 for a potential continuation of the uptrend.

 by ForexInflux

No comments: