FX.co ★ HAPPY KILLER | USD/JPY

USD/JPY Market Analysis (H4 Timeframe) Based on the provided H4 chart data for USD/JPY, the pair appears to be consolidating after a significant downtrend. The current candle shows a narrow range between 147.84 and 147.97, closing at the high of its range, which could indicate a tentative attempt to find support and build bullish momentum. This price action is occurring just above a crucial support level at 147.00. The price has fallen from a high near 150.05, and the current level around 147.97 is a key level to watch; a firm hold above this could signal a short-term recovery, while a break below would likely target the 147.00 support. The Stochastic Oscillator reading of 6.50 for the %K line and 17.12 for the %D line is deeply in the oversold territory (below 20). This suggests that the recent selling pressure may be exhausted, increasing the potential for a bullish reversal or a period of consolidation. The extremely low Stochastic values often precede a corrective bounce, especially if price action confirms with a break above near-term resistance. The main resistance levels to the upside are seen at 148.55 and 149.30.

Summary: USD/JPY on the H4 timeframe is testing a critical juncture. The price is hovering just above the 147.97 level after a pronounced decline from 150.05. The key technical takeaway is the deeply oversold Stochastic Oscillator, which signals that the selling momentum is overextended and a technical rebound is increasingly likely. The immediate outlook hinges on whether the pair can maintain support above 147.00. A bullish reversal from this area would initially target 148.55, while a breakdown below 147.00 could open the path towards 146.30.