The USDJPY pair has recently encountered a significant development, capturing the attention of traders and analysts alike. The pair has broken below the rising trend line on the 4-hour chart, suggesting that a lengthier consolidation phase for the uptrend from the 146.47 level is currently underway.
Key Support Level: A Pivotal Juncture
As the pair navigates through this consolidation phase, all eyes are on the 150.26 key support level. As long as this crucial support holds firm, traders believe that the upside move could eventually resume, with the potential for further gains towards the significant 170.00 area after the consolidation phase.
Initial Support and Downside Risks
While the focus remains on the 150.26 key support, traders will also be closely monitoring the initial support level at 150.95. A breakdown below this level could potentially take the price to test the key 150.26 support level, heightening the risk of a potential trend reversal.
Trend Line Break and Potential Reversal
The pair’s break below the rising trend line on the 4-hour chart has raised concerns about the sustainability of the broader uptrend from 146.47. Traders will be closely watching the price action around the 150.26 key support level, as only a decisive break below this level could signal the completion of the uptrend, potentially paving the way for a significant shift in the pair’s trajectory.
Key Levels to Watch
In this volatile phase, traders will be keeping a close eye on the following key levels:
- Rising trend line (recently breached)
- 150.95 (initial support)
- 150.26 (key support)
- 170.00 (potential upside target)
The price action around these levels will be instrumental in determining the pair’s next move and the potential for a continuation of the uptrend after the consolidation phase, a lengthier consolidation period, or a potential reversal.