USDJPY (4H): rebound or breakdown at 159.50?

USDJPY plunges on 4H chart after hitting resistance at 160.38. Rebound at 159.50 and 50-SMA eyes 160.38 & 160.90 targets.

Overview: USDJPY has been plunging over the last couple of sessions in the 4-hour chart, after finding strong resistance near its one-month peak of 160.38 and the 200-period SMA.

Momentum: The RSI confirms the recent downside move as it crossed below the 50 level; however, the MACD is moving sideways, indicating a potential pause in the bearish move.

Bullish Scenario: A rebound near the 50-period SMA and the 159.50 support level is expected to keep the bullish trend in play, with the next targets being the 160.38 resistance and the 160.90 barrier from the July peaks.

Risk: A break below the 158.90 support, which overlaps with the lower boundary of the one-month ascending channel, would invalidate the bullish scenario.

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