USD/JPY Technical Analysis
Technical analysis of USD/JPY for October 1, 2024, highlighting potential breakout scenarios. Detailed insights from daily, 4-hour, and 1-hour charts focusing on key support and resistance levels.
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Daily Chart Overview:
On the daily timeframe, USD/JPY has been trading within a descending wedge pattern, signaling a potential breakout. The price recently approached the key support level at 141.74 before rebounding upward. We now see price consolidating near 143.76, close to the wedge's upper boundary. Should the pair break above this resistance, the next target would be 146.49, a significant level seen in the previous price action. If the pair fails to break higher, expect a retest of the support at 141.74. This wedge pattern could be setting the stage for a directional move in the coming sessions, with the bias currently leaning toward a bullish breakout.
4-Hour Chart Overview:
On the 4-hour chart, the price is reacting after testing a strong supply zone around 144.00, pulling back to 143.75. Two potential scenarios could unfold here:
- A continued bearish move towards the key support levels at 142.97 and 141.59.
- A reversal from the current level with a retest of the supply zone and a possible push to break the upper resistance near 146.48.
Traders should monitor price action closely at these levels, as a break above the supply zone could lead to significant upside momentum. Conversely, failure to hold the current support could trigger a larger pullback.
1-Hour Chart Overview:
On the 1-hour chart, USD/JPY formed an ascending channel which recently broke to the downside. The price is currently hovering around 143.80 after rejecting the 144.08 resistance level. The recent bearish price action hints at further downside potential, with a target towards 142.78, where demand could step in. This aligns with the lower target area identified on higher timeframes.
If price action remains bearish, traders should be cautious of a short-term retest of the broken channel before continuing lower. However, should bulls manage to reclaim the 144.08 level, it would invalidate the bearish outlook, and focus would shift to the previous highs.
| Conclusion: USD/JPY is at a critical juncture, with key levels to watch for in the short term. On the upside, a break above 144.08 and a successful retest of the wedge on the daily chart could see the pair targeting 146.48. On the downside, failure to hold current support could push the pair towards 142.78 and 141.74. Keep an eye on price action around these critical levels for potential trading opportunities. |
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10/01/2024
