FX.co ★ remington.kihn | USD/JPY

Technical analysis of USD/JPY (H1): The storm is calming down, transitioning to consolidation. Hello traders! Let's take a look at the yen. On the USD/JPY chart, we are currently witnessing a classic scenario where the market is trying to recover after a severe directional collapse. Yesterday's panic is now giving way to an attempt to find solid ground. Price structure and level geometry (Price Action): Pay attention to the change in status: the system now shows No Trend Identified. This is a very important signal. The vertical bearish trend has stopped, and the activity has shifted to a sideways accumulation phase (flat). Consolidation zone: The quote is squeezed around the 158.657 mark. The price has literally "wrapped around" Support 1, turning it into a local pivot point. Resistance levels: Yesterday's support has now turned into solid resistance. The nearest significant barrier for growth is the central Pivot at the 159.112 level. Lower boundaries: If the bears make another attempt to push the price down by momentum, Support 2 (158.302) will act as a magnet. Basement indicator readings (Impulse Exhaustion): Histogram: The array still remains red, indicating the absence of a large limit buyer. The bears have not left, they have simply taken a pause. Linear oscillator: The value has frozen at the critical 0.15 mark. The indicator is in the deep oversold zone. Selling the asset at this point is mathematically disadvantageous — the spring is compressed in the opposite direction. Trading plan and precise timing: In our specificity, where entry accuracy and correct expiration time calculation determine the outcome of the trade, trading in a flat after a strong collapse requires special endurance. The market is currently drawing a "fence". Scenario for a decrease (Put / Short): Entering a continuation of the decline at the 0.15 oscillator is an unjustified risk. For a safe short position, it is necessary to wait for a technical price rebound to the Pivot (159.112) and the formation of a reversal pattern there. Scenario for an increase (Call / Long): Buying right now is also premature — the histogram is still red, and there are no volume confirmations. The ideal entry point for a rebound (Call) will be a false breakthrough (spike) down to the Support 2 level (158.300) followed by a sharp return and the oscillator bending upwards from the 0.15 mark. Summary: The market is taking a breather. The aggressive downward phase has been replaced by an exhausting sideways movement. The most sensible thing to do now is not to rush within this narrow corridor, but to set alerts at the range edges (159.112 above and 158.300 below) and wait for a clear signal. Wishing you calm and calculated trades!