The USDJPY reached a high earlier today close to the range of 147.01 to 147.338 but has since dropped. This indicates that buyers may be losing strength and highlights the support levels below. The next target area is between 145.92 and 146.26, which includes the 61.8% retracement level at 145.978 from the decline that started in June. We will be monitoring this area for any signs of renewed buying interest.

Shift Back To Sellers

If the support area is broken, sellers may regain control. This could lead to lower target levels at 145.347 and the 100-bar moving average on the 4-hour chart, which is currently at 145.02. The recent price movements give us insights into short-term momentum. Specifically, the rise to the 147.01 to 147.338 range and the subsequent decline indicate hesitation among those who previously pushed the pair higher. The pause just under that resistance level shows where demand has faced obstacles. While the difficulty in surpassing 147.338 has been seen before, today’s reaction makes it clearer. With the pair backing down, our attention turns to the support between 145.92 and 146.26. Within this zone, we are closely watching the 61.8% retracement at 145.978. This level represents a critical battleground in the current trend after the decline since June. As prices approach these Fibonacci levels, traders begin to look for reversal opportunities. This is not just an academic exercise; there is capital waiting for guidance.

Potential Downside Targets

If this support band fails, we could see prices drop further. The next relevant areas are based on previous value zones and moving averages. The level at 145.347 has attracted interest before, while the 100-bar moving average around 145.02 often influences price movements when volatility decreases. These are not arbitrary lines; they are significant levels based on historical patterns, indicating where prices might hesitate again, either for new buy opportunities or short-term relief. We avoid guessing and instead react to the levels in play. If prices start climbing toward 146.26 again, the reaction at that level will be more important than the price movement itself. Additional buying may occur, but it needs to be supported by trading volume. We pay close attention when these levels align with retracement signals. It’s when price, time, and participant activity intersect that we gain clarity. With the failed push above 147.33 earlier showing weakness from bulls, our focus shifts to the pressure points below. Monitor the hourly closes and avoid getting trapped by false breaks. Use the 4-hour moving averages to guide your exposure—not your excitement. Create your live VT Markets account and start trading now.

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