USD-JPY H4 Chart Bullish Reversal Potential
The USD/JPY currency pair, often referred to as the “Ninja,” is a major forex pair that represents the exchange rate between the US Dollar (USD) and the Japanese Yen (JPY). As a highly liquid pair, USDJPY is influenced by macroeconomic data, central bank policies, and market sentiment. Today’s key economic events include the US Consumer Price Index (CPI) report, which serves as a crucial inflation gauge, impacting Federal Reserve interest rate expectations. Higher-than-expected CPI figures will strengthen USD as traders anticipate potential Fed rate hikes, while weaker data could pressure the dollar. Additionally, Japan’s Corporate Goods Price Index (CGPI) data will influence the JPY, but its effect might be limited unless it deviates significantly from forecasts.
Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
On the USDJPY H4 chart, the pair recently rebounded from its ascending trendline, coinciding with the 61.8% Fibonacci retracement level, indicating strong technical support. Currently, the price is testing the upper Bollinger Band, facing resistance. If it breaks above this level, the next upside target will be the 148.997 resistance zone, aligning with the 50% Fibonacci retracement. The Parabolic SAR indicator shows the last four dots below the price, signaling bullish momentum. Meanwhile, the Stochastic Oscillator is nearing the overbought zone, suggesting possible short-term exhaustion before another upward push. The Awesome Oscillator (AO) displays growing green bars, indicating strengthening bullish momentum. A sustained break above 148.997 would confirm a trend reversal, while failure to breach the Bollinger Band resistance may result in another pullback toward the support trendline.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.
