USD/JPY
SUPPORT RESISISTANCE
Support and resistance zones are key concepts in technical analysis1
. They represent price levels on a chart where the probabilities favor a pause or reversal of a prevailing trend1
.
Support Zone: This is where a downtrend is expected to pause due to a concentration of demand1
. Buyers step in, preventing the price from falling further1
.
Resistance Zone: This is where an uptrend is expected to pause due to a concentration of supply1
. Sellers step in, preventing the price from rising further1
.
These zones can be identified using trendlines, moving averages, and previous price levels where the asset has reversed direction1
2
. When the price reaches these levels, it often bounces back, but if it breaks through, it can lead to a significant move in the direction of the breakout3
.
Support and resistance zones are key concepts in technical analysis1
. They represent price levels on a chart where the probabilities favor a pause or reversal of a prevailing trend1
.
Support Zone: This is where a downtrend is expected to pause due to a concentration of demand1
. Buyers step in, preventing the price from falling further1
.
Resistance Zone: This is where an uptrend is expected to pause due to a concentration of supply1
. Sellers step in, preventing the price from rising further1
.
These zones can be identified using trendlines, moving averages, and previous price levels where the asset has reversed direction1
2
. When the price reaches these levels, it often bounces back, but if it breaks through, it can lead to a significant move in the direction of the breakout3
.
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