USD/JPY, Technical Analysis – H1

The pair continues to collapse after the historic intervention by the Bank of Japan. The key resistance for a possible recovery is currently the 157.500–157.600 area: if the bulls manage to consolidate above it, the previous efforts of the bears could be quickly neutralized. However, it is still premature to talk about this, and the risks of a deeper decline also remain.

Primary Scenario:

A pullback to 157.500–157.600, followed by a new decline toward 157.000.

Alternative Scenario:

A breakout above 157.500–157.600 and a rise toward 158.000.

Analyst Commentary:

Buyers have a chance against the backdrop of a reverse short signal on the EUR/USD pair.