USDJPY pair has been caught in a sideways trading range, capturing the attention of traders and analysts alike. For several days, the pair has been oscillating between the 150.26 and 151.96 levels, a range that has become a crucial battleground for bulls and bears.
Consolidation or Continuation?
As the pair continues its range-bound trajectory, traders will be closely monitoring the 150.26 key support level. As long as this crucial level holds firm, the price action within the trading range could be interpreted as a consolidation phase for the broader uptrend that originated from the 146.47 mark.
Potential Bullish Breakout
While the consolidation phase unfolds, traders will be keeping a watchful eye on the 151.96 resistance level. A decisive breakout above this level could potentially propel the pair towards the 153.00 area, potentially reinforcing the strength of the broader uptrend.
Initial Support and Downside Risks
While the focus remains on the potential for a bullish breakout, traders will also be closely monitoring the initial support level at 150.80. A breakdown below this level could potentially trigger further downside momentum, putting the 150.26 key support level to the test.
However, it is only a decisive break below the 150.26 level that could indicate that the upside move from 146.47 has potentially completed at the 151.96 level. In such a scenario, the pair would likely find support around the 148.00 area, potentially signaling a more significant correction or a reversal of the broader uptrend.
Key Levels to Watch
In this volatile phase, traders will be keeping a close eye on the following key levels:
- 150.26 (key support)
- 150.80 (initial support)
- 151.96 (resistance)
- 153.00 (potential upside target)
- 148.00 (potential downside support)
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, a consolidation phase, or a potential reversal.