USD/JPY, Technical Analysis – H1

The pair continues to consolidate and build tension ahead of a likely downward reversal, for which a signal was formed earlier. The potential supply zone lies at 160.30–160.35, from where short positions can be considered with a target of at least 100 pips, aiming for a break of the trendline.

Key Levels:  

□ 160.30 – 160.35 – key resistance / supply zone  

□ 159.30 – intermediate support  

□ 158.50–158.80 – main downside target area  

? Primary Scenario:

Test of the 160.30–160.35 zone followed by a strong downward reversal.

? Alternative Scenario: 

Continued consolidation around current levels.

⚖️ Analyst Commentary: 

Trading against the prevailing trend is one of the least favorite parts of a trader’s job. If you are a trend follower, it is wiser to wait for clear confirmation of the reversal before entering.