USD/JPY, H4

On the four-hour timeframe, a Hammer candlestick analysis pattern formed around 146.03, and a series of Shooting Star patterns appeared around resistance level 141.11, which signals a trend reversal. At the moment, the quotes are consolidating near the support level of 137.50, forming a “bearish” Marubozu pattern, and, most likely, they will maintain a negative trend: consolidation of the price below 137.50 will allow it to continue moving towards the area of 130.95–126.25. In case of a reversal and consolidation above the resistance level 141.11, growth may develop into the zone 146.03–151.82.

USD/JPY, D1

On the daily chart below 146.03, there is a “bearish” Harami Cross candlestick pattern, after the formation of which the quotes reversed downwards, and around 141.11 there is a Three Black Crows pattern, emphasizing the strength of the “bears” and signaling a continuation of the downward dynamics to 137.50, overcoming which will be a signal to open short positions with the target at 130.95–126.25.

Support and resistance

Resistance levels: 141.11, 146.03, 151.82.

Support levels: 137.50, 130.95, 126.25.

Trading tips

Short positions may be opened below 137.50 with the targets at 130.95 and 126.25. Stop loss – 139.24. Implementation period: 9–12 days.

Long positions may be opened above 141.11 with the targets at 146.03 and 151.82. Stop loss – 139.24.