The USDJPY currency pair is displaying continued bullish trends as it approaches the US trading session tonight, following a breakout from a rising wedge pattern on the hourly chart. This breakout above the resistance level signals the conclusion of the consolidation phase and opens the door for short-term gains. Although the Moving Average (MA) lines appear to be flattening, the existing ZigZag pattern, which is establishing a structure of higher highs and higher lows, reinforces the notion that the buyers are still in control. This technical structure indicates that the bullish sentiment remains robust amid growing market optimism regarding further price strengthening.
In terms of momentum, the MACD indicator continues to remain in positive territory, indicating that buying pressure remains strong. This condition reflects the market’s confidence in the possibility of price increases, even as some participants await further confirmation of direction after the breakout. As long as the price stays above the breached resistance area, the potential for upward movement towards higher levels remains wide open. However, if the price fails to maintain its position and drops back below this area, there may be potential for a short-term correction prior to the continuation of the bullish trend.
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On the 15-minute timeframe, a bullish channel is further enhancing the potential for USDJPY gains during the upcoming US session. The upward direction of the MA and the CCI indicator that is beginning to rebound from oversold territory provide initial signals of a momentum recovery. This combination of technical signals strengthens the expectation of price increases, with USDJPY likely to test key resistance around 155.370 in the near term, as buyer dominance remains strong in the market.
Technical Reference: Buy while above 154.400
Potential Take Profit 1: 155.180
Potential Take Profit 2: 155.370
Potential Stop Loss 1: 154.600
Potential Stop Loss 2: 154.400
