Hello, dear traders, we are again here with USDJPY Market Technical Analysis & Trading Signal for February 6, 2025. Let’s dive into the analysis.
Today’s USDJPY Market Technical Analysis by Guriforex – Potential Reversal from Descending Channel!
The USDJPY Market has been trading in a well-defined descending channel, consistently forming lower highs and lower lows. However, the pair has now reached a critical support zone near 152.500, where it has shown signs of a potential bounce. This could indicate an upcoming bullish reversal, provided the price consolidates above 152.800.
Traders are now watching closely to see whether the price can sustain momentum and break through the nearby resistance. If buyers step in strongly, we could see USDJPY move toward 154.100, a key level aligned with previous structure resistance.
🔍 USDJPY Market Technical Outlook
- Descending Channel: The price has been trending down within a defined bearish channel.
- Support Zone: The price is testing key support near 152.500, which has previously acted as a demand zone.
- Potential Breakout: A clear move above 152.800 would indicate a bullish reversal.
📊 Trade Idea & Scenarios
🔼 Bullish Scenario:
- If the USDJPY Market consolidates above 152.800, it could trigger a breakout.
- Entry: Buy on confirmation above 152.800.
- Target: 154.100 (next resistance).
- Stop-loss: Below 152.400 to manage risk.
🔽 Bearish Continuation:
- If the price fails to break 152.800 and faces rejection, it could resume the downtrend.
- In this case, further downside toward 152.000 is likely.
- Break below 152.000 could open the door for more losses.
📅 USDJPY Market Fundamental Factors to Watch
US Dollar Strength: The USD’s movement depends on upcoming US economic data and Federal Reserve policies.
Market Sentiment: If risk aversion increases, JPY could gain strength, limiting USDJPY’s upside.
BoJ Intervention: The Bank of Japan’s policies could influence the next move in USDJPY.
🚀 What’s Your Take on USDJPY Market?
👀 Do you see a breakout above 152.800 or more downside pressure?
📢 Share your thoughts and trade ideas below! 💬