USDJPY - RETEST OF SUPPORT BREAKDOWN. SELLING AHEAD?

Jan 20

Symbol - USDJPY

USDJPY is unable to maintain its uptrend for the time being. Speculation about potential actions from the Bank of Japan is expected to surface. Meanwhile, the US dollar continues to strengthen. The 158.45 level represents a significant resistance formed by bears, who are still exerting pressure on the market. This week, we anticipate active measures from the Bank of Japan, particularly an interest rate hike. While such actions are relatively rare, they could provide strong support for the currency pair. If Japan proceeds with this move, the pair may continue its correction from the 0.5 - 0.7 Fibonacci levels. In this case, key targets could include the zones at 153.25 and 152

Resistance levels: 156.55, 157.22
Support level: 155

A price drop below 155 could trigger aggressive selling. The rate decision in Japan is set for Friday, and until then, the price may remain in a consolidation phase.

Jan 24

Trade active

USDJPY is encountering repeated resistance at the designated resistance zone, indicated by the dashed line.
Since I shared the trading idea, the position is running in profit of over +100 pips.
As previously noted, a breakdown below the 155 level could potentially initiate significant selling pressure.

Jan 26

Trade closed: target reached

Jan 27

Note

CMP 154

A further straight decline of 100 pips following the breakdown of the 155 support zone.
Trade closed fully with +250 pips profit.