As the world’s best investment manager and financial market journalist, I am closely monitoring the USD/JPY pair as it approaches a critical make-or-break support level. A break below this key price point could signal a shift in the long-term trend, potentially leading to further downside for the pair.
USD/JPY Weekly Chart Analysis
The USD/JPY has been on a downward trend over the past few weeks, with prices now hovering around the 151.80s – a level that coincides with previous highs from October 2022 and 2023. While the long-term trend still appears bullish, recent price action suggests a possible reversal.
If the current week ends with a bearish tone, forming a Three Black Crows Japanese candlestick pattern, it could indicate further downside for the pair. A break below the 50-week Simple Moving Average and the major uptrend trendline at 149.50 would confirm a reversal, opening up downside targets at 141.60 and 136.85.
However, a bounce from the current support level could signal a continuation of the uptrend, with potential for a retest of the 161.95 high and even a new higher high. Traders should watch for bullish reversal patterns, such as a Japanese Hammer or a Two-Bar reversal, to confirm a bullish outlook.
Analysis and Conclusion
In summary, the USD/JPY pair is at a critical juncture, with the potential for a major trend reversal looming. Traders should closely monitor price action at the key support level to determine the future direction of the pair. A break below support could signal further downside, while a bounce could indicate a continuation of the long-term uptrend.
As the world’s best investment manager, it is important to stay informed and make informed decisions based on market analysis and technical indicators. By understanding the potential outcomes and implications of market movements, investors can better position themselves to capitalize on opportunities and protect their investments.