FX.co ★ Zezooman10 | USD/JPY

Professional Technical Analysis – Bat Pattern on 4H Chart A highly accurate harmonic Bat pattern has completed on the 4-hour chart at the 145.85 level, signaling a potential strong bearish reversal in the upcoming sessions. The Bat pattern is one of the most reliable reversal harmonic patterns, built upon precise Fibonacci ratios to identify potential turning points in the market. Pattern Details: The Bat pattern typically concludes at point D, which represents the Potential Reversal Zone (PRZ). In this case, the PRZ lies exactly at 145.85, making it a key area to watch closely. Price action around this level already shows initial signs of rejection, increasing the chances of a valid reversal setup. Sell Opportunity: The 145.85 zone presents a golden opportunity to enter short positions, especially as bearish candlestick patterns (such as a Shooting Star or Bearish Engulfing) begin forming on lower timeframes. This behavior suggests the bulls may be losing momentum, and sellers are stepping in to dominate. Target Levels: First target at 144.50 – representing a 38.2% retracement of the most recent upward wave. Second target at 143.80 – aligns with a previous strong support level and also the 61.8% Fibonacci retracement. Risk Management: The recommended stop-loss is placed just above 146.30, which is slightly beyond the D point and provides a safe buffer against volatility while maintaining a favorable risk-to-reward ratio. Supporting Technical Indicators: The RSI is showing signs of declining from overbought territory, indicating weakening bullish momentum. A bearish divergence is appearing between price action and the MACD, which further supports the likelihood of a downward move. The level 145.85 also coincides with a horizontal resistance from a previous peak, strengthening the argument for a reversal at this zone. Trading Strategy: Entering short at 145.85, with partial positions and clear target levels, while maintaining a tight stop above 146.30, forms a robust professional approach—especially when aligned with a well-respected harmonic pattern such as the Bat. Traders are advised to monitor fundamental news releases during this time to manage unexpected volatility.