USD/JPY – 1H – BUY

The USD/JPY 1H signal is a confluence of multiple bullish triggers, including a Trendline Retreat Up, Bear Pennant, Belt Hold Bullish, and Bullish Engulfing, alongside momentum indicators like BOP Zero Cross Up, RSI OS Exit, and STOCHRSI KD Cross Up. These signals suggest a potential short-term bounce or reversal within a broader bearish trend. However, the higher timeframes (15m to 1d) all show bearish trends, with the 1H and 2H extremely strong, indicating that any upside may be limited and could be a counter-trend move.

Key resistance is at 160.87200, which aligns with the bearish structure. A break above this level could signal a stronger reversal, but until then, the path of least resistance remains downward. Traders should watch for price action around this level and monitor whether the bullish momentum can sustain or if it fades, leading to a continuation of the downtrend.