The USDJPY pair is currently in a structured consolidation phase, forming a continuous pattern in the shape of a descending triangle. This pattern reflects a market that is anticipating confirmation of the next direction, with the potential for significant movement if a valid breakout occurs. From a price action perspective, the price has shown resilience by bouncing off the equilibrium area, which serves as a strong support level, indicating that buying interest is beginning to surface in this region.
From a technical analysis standpoint, the prospects for USDJPY’s strengthening are further supported. The Moving Average continues to point in a bullish direction, emphasizing that the underlying trend remains positive, while the CCI has surged from an oversold territory, indicating a return of buying momentum to the market. The combination of the price rebound from a key support level and these indicator signals keeps the possibility for further climbs in USDJPY, provided that the price remains above the equilibrium level and buying pressure remains strong.
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On the 15-minute chart, USDJPY is exhibiting a shift in short-term momentum after successfully breaking through the bearish resistance channel. The Moving Average has begun to trend upward as an initial signal of a directional change, reinforced by the CCI rebounding from the oversold area, confirming the return of buying pressure. With this situation, USDJPY has the potential to continue its strengthening to test the resistance area at 156.830, as long as it maintains above the breakout area.
Technical Reference: buy while above 155.755
Potential Take Profit 1: 156.585
Potential Take Profit 2: 156.830
Potential Stop Loss 1: 155.935
Potential Stop Loss 2: 155.755
