USDJPY - POTENTIAL REVERSAL FROM KEY SUPPORT LEVELS

Mar 6

Symbol - USDJPY

CMP - 147.82

Following a significant decline in USDJPY, The price is approaching a strong support zone which is held since July 2024. The fundamental environment has been volatile recently, with a predominant influence from Trump's tariffs & US economic factors. Given the recent price action near support zone 148.00 - 147.00, there is a possibility that the pair could rebound from this level. The market’s current hesitation near this support zone suggests that the bulls may be preparing to defend this area.

The aggressive sell-off in US dollar, while exerting downward pressure, is also at oversold levels & creating a scenario where a potential reversal could take place, supported by the decline of Japanese Yen. Should the price manage to hold above the 147.20 support, it could signal the reversal.

From a technical perspective, there are two potential triggers on the chart: one signaling a buy and the other signaling a sell. However, given the prevailing global and local forex trends, the preference is to take a long position.

Resistance levels: 148.85, 150.00
Support levels: 147.25, 146.90

At present, the market is in a downtrend, with potential for a counter-trend correction. The direction of the price will depend on the US dollar's performance and upcoming economic news. If the outcome is favorable, the price could potentially reach to 150.00 & 152.15 levels.

Mar 15

Trade closed: target reached

USDJPY hasn't been able to break falling channel yet.
Long position closed with +190 pips profit.

Mar 20

Note

Although I closed my long position at channel resistance but target level 149.98-150.00 has been reached as anticipated.