On the four-hour chart, there is the formation of a Falling Wedge price pattern, which is a signal for an increase in "bullish" dynamics, and at the moment its upper boundary has already been broken. At the same time, the appearance of Hammer reversal candlestick patterns suggests that the asset has reached a local bottom, from where the price is heading up. Also at the level of 131.22, a "bullish" Marubozu pattern should be noted, emphasizing the determination of buyers to restore the price. In the current situation, the USD/JPY pair is likely to rise to the resistance level of 135.42, overcoming which will allow quotes to recover to the zone of 138.44–142.24. An alternative scenario is likely if the "bulls" fail to hold the key support level at 129.92; in that case, the negative dynamics may intensify up to 121.27.
On the daily chart, at the key support level of 129.92, two successive reversal Hammer patterns of candlestick analysis are being formed, confirming that the price is likely to reach the bottom. At the same time, the instrument continues to be in a "bearish" trend, and in order to change it, buyers need to overcome the resistance level of 135.42, which, in turn, will allow quotes to move to the area of 138.44–142.24.
Support levels: 129.92, 126.66, 121.27. | Resistance levels: 135.42, 138.44, 142.24.