USD/JPY, H4

On the four-hour chart, below the level of 147.96, there is the formation of a series of reversal candlestick analysis patterns Shooting Star and Hanging Man, which signal that the asset has reached local resistance. In addition, during the second attempt to test the level of 147.96, a downward price gap formed, which strengthened the positions of sellers. The construction of another Bearish Engulfing pattern near the level of 146.44 can also be noted, which confirmed the price reversal downward. The combination of these figures warns of prevailing "bearish" sentiment in the market, and breaking the key support level of 144.92 will become a catalyst for further movement of quotes to the area of 141.53–137.32. An alternative scenario is likely if the price consolidates above 147.96, then the "bulls" can restore their positions to the range of 150.41–152.05.

USD/JPY, D1

On the daily chart in the area of 147.96–144.92, a series of reversal Hanging Man candlestick patterns are forming, signaling readiness for a reversal. Most likely, the USD/JPY pair will continue to decline to the level of 144.92, breaking through which will open the way for the "bears" to the area of 141.53–137.32.

Support and resistance

Support levels: 144.92, 141.53, 137.32.

Resistance levels: 147.96, 150.41, 152.05.

Trading tips

Short positions can be opened below 144.92 with targets at 141.53, 137.32. Stop-loss — 146.44. Implementation time: 9-12 days.

Long positions can be opened above 147.96 with targets at 150.41, 152.05. Stop-loss — 146.44.