USDJPY Technical Analysis: Bearish Bat Pattern
Daily Timeframe | Harmonic Reversal Setup
The US Dollar vs. Japanese Yen (USDJPY) pair has formed a distinct Bearish Bat harmonic pattern on the Daily timeframe. This geometric structure often signals a potential trend reversal or a significant retracement.
The “Bat” pattern is characterized by a specific B-point retracement of approximately 38.2% to 50% of the XA leg, and a deep D-point completion at the 88.6% Fibonacci retracement of XA. As seen in the chart above, the price action has reacted precisely within the Potential Reversal Zone (PRZ).
Trade Parameters
Based on the FxMath Harmonic Patterns Helper, here are the identified key levels for this setup:
| Parameter | Price Level | Notes |
|---|---|---|
| Pattern | Bearish Bat | Trend Reversal (Sell) |
| Open Price (Entry) | 156.38 – 157.72 | The D-Point completion zone. |
| Stop Loss | 158.48 | Placed strictly above Point X (Pattern invalidation). |
| Take Profit 1 | 153.14 | 38.2% Retracement of CD leg. |
| Take Profit 2 | 150.19 | 61.8% Retracement of CD leg. |
| Take Profit 3 | 148.11 | Extended Target. |
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