Analysis of USD/JPY (Hourly Chart)

The USD/JPY pair is currently trading near a critical zone, indicating potential for a strong movement. The price has been consolidating near the 157.00 level, which serves as a key psychological zone. Based on the recent price action and support/resistance levels, there are two plausible scenarios: continuation of the uptrend or a reversal toward lower levels.

Key Levels to Watch:

Resistance Levels:

First resistance: 157.50

Second resistance: 158.00

Major resistance: 158.50

Support Levels:

First support: 156.50

Second support: 155.50

Major support: 154.50

Potential Scenarios:

1. Bullish Scenario (Buy):

If the price breaks above 157.50 and consolidates, it may indicate the continuation of the uptrend.

Entry: Wait for a clear breakout above 157.50.

Targets:

Target 1: 158.00

Target 2: 158.50

Stop-Loss: Place the stop-loss below 156.70 to protect against unexpected reversals.

2. Bearish Scenario (Sell):

If the price falls below 156.50 and closes under this level, a downward correction or trend reversal may be in play.

Entry: Enter short positions if the price breaks and consolidates below 156.50.

Targets:

Target 1: 155.50

Target 2: 154.50

Stop-Loss: Place the stop-loss above 157.00 to limit potential losses.

Technical Indicators to Monitor:

RSI (Relative Strength Index):

RSI hovering around the 50-60 range may indicate potential bullish momentum if it moves higher. Conversely, a drop below 50 could signal bearish pressure.

Moving Averages (MA):

Watch for the 50-period MA crossing above or below the 200-period MA for trend confirmation.

Summary:

At the moment, the market sentiment appears bullish, but the lack of strong movement suggests caution. Traders should monitor the 157.50 resistance level closely for confirmation of a breakout, while also keeping an eye on the 156.50 support level for potential bearish setups.