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The USD/JPY pair has seen significant movement recently, extending its decline from 161.95 to a low of 141.68. However, a subsequent bounce to 146.36 suggests that the pair is currently in a consolidation phase. Here’s what to watch for in the coming days:
Key Levels and Scenarios
Consolidation Phase:
- The pair is likely to trade within the range of 141.68 to 147.70.
- As long as the 147.70 resistance holds, the downtrend could resume.
Bearish Scenario:
- If the pair fails to break above 147.70, a further decline towards the 140.00 area is possible after the consolidation phase.
Bullish Scenario:
- A breakout above the 147.70 resistance would indicate that the downtrend from 161.95 has completed at 141.68.
- The next target on the upside would be the 150.00 area.
Conclusion
The USD/JPY pair is in a critical consolidation phase, trading between 141.68 and 147.70. A breakout above or below these levels will likely determine the next significant move. Traders should stay vigilant and watch for any signs of a breakout to position themselves accordingly.
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