USD/JPY seems to be able to make larger highs after a downswing in March.

Are we taking a look at a bearish flag or a legit reversal?

I’m taking a look at USD/JPY’s 1-hour chart for clues!

USD/JPY 1-hour Foreign exchange Chart by TradingView

In case you had been too busy prepping for the Easter weekend, you need to know that knowledge releases from the U.S. up to now this week level to Uncle Sam’s labor market weakening thanks partially to the Fed’s aggressive tightening program.

Speculations of a recession within the U.S. helped drag USD/JPY to its 133.50 ranges initially of the week all the best way to its 130.65 weekly lows.

The pair is now buying and selling nearer to 131.75, which is simply above a possible ascending channel assist on the 1-hour timeframe.

Merchants who’re relying on as we speak’s U.S. NFP report printing larger than anticipated for one more month can value in a attainable bounce to the 133.50 earlier highs.

You should purchase at present ranges, place stops just under this week’s lows, and goal 133.50 and even the 136.00 earlier inflection level.

However what if this week’s knowledge releases had been proper in predicting a weakening labor market?

The prospect of a recession within the U.S. may drag USD towards its fellow safe-haven JPY.

A weaker-than-expected NFP launch can pull USD/JPY under its ascending channel to retest earlier areas of curiosity like 130.50 or 129.70.

What do you assume? Are we wanting initially of an uptrend or only a potential bearish flag?

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