The USD/JPY pair continues to show strength, maintaining its position within a rising price channel visible on the 4-hour chart. This suggests that the uptrend that began at 154.54 remains intact.
Bullish Outlook
As long as the price stays within this channel, we can expect the upward movement to continue. The next key target for bulls to watch is the 163.00 level.
Potential Risks
However, traders should remain vigilant for any signs of weakness:
- A breakdown below the channel support could trigger a pullback.
- If this occurs, watch for a potential retest of the 160.26 support level.
- A break below 160.26 would signal a more significant consolidation phase for the broader uptrend that started from the May 3 low of 151.86.
- In this scenario, we could see a deeper decline towards the 158.00 area.
Key Takeaways
- USD/JPY remains in a bullish channel on the 4-hour chart
- Next upside target: 163.00
- Key support to watch: Channel support and 160.26
- A break below 160.26 could lead to a test of 158.00
Traders should use proper risk management techniques and consider multiple timeframes when making trading decisions based on this analysis. Keep a close eye on the price action around the channel boundaries for potential entry or exit signals.