Weekly Timeframe Insights
For this weekly analysis, the USD/JPY pair experienced significant volatility last week, largely driven by the impact of the U.S. election, which resulted in Donald Trump being elected as the new president. The pair closed the week with a notable bearish reversal pattern near the 152.568 level. This pattern suggests that bearish momentum could be gaining traction. If this reversal holds, the next potential target could be the key support level around 150.012 on the weekly timeframe.
Daily Timeframe Outlook
Despite the bearish signals on the weekly chart, the daily timeframe tells a different story. The market structure remains firmly in an uptrend, with the 152.000 support level holding steady. This indicates that bullish sentiment is still in play on a shorter timeframe.
For the bearish reversal on the weekly chart to gain momentum, the daily support at 152.000 must first be breached. Until then, the bullish trend on the daily chart remains intact, providing a counterpoint to the weekly bearish outlook.
4-Hour Timeframe Overview
Zooming into the 4-hour timeframe, the uptrend persists, with the price bouncing strongly from the 151.500 zone. This recovery was fueled by last week’s election-related volatility, showcasing the pair’s resilience in the face of political uncertainty.
Key Levels to Watch
- Weekly Support: 150.012
- Daily Support: 152.000
- 4-Hour Bounce Zone: 151.500
Traders should closely monitor these levels, as a break below 152.000 on the daily timeframe could signal a shift towards bearish dominance. Conversely, if the 151.500 level continues to hold, the pair may resume its upward trajectory.
Check for this major Economic event at forex factory economic calendar