The USDJPY currency pair is increasingly indicating a solid reversal in direction after successfully surpassing a significant resistance level that previously confined its movements within a bearish channel. The formation of a break high above this key level illustrates a surge in buying pressure, marking a transition in market structure from bearish to bullish. With the Moving Average now trending upwards, support for this momentum shift becomes more evident, suggesting that buyers are beginning to take control and creating opportunities for further gains in the near term.
The strengthening signal becomes more valid with the MACD moving into positive territory, indicating that buying momentum is rising and the bullish trend is becoming more dominant. The breakout of the resistance combined with an ascending MA provides additional confirmation that the potential for USDJPY to rise on the 1-hour timeframe remains intact. As long as this buying pressure persists, the likelihood of USDJPY continuing its rally towards the next resistance level increases significantly during the US session tonight.
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On the 15-minute timeframe, USDJPY also displays a consistent strengthening structure after the price remained within a bullish channel and achieved a break high on the Bollinger Bands resistance. The ability of the price to sustain above the resistance area confirms that buyers are still dominating short-term movements. With the MACD remaining in positive territory and solid technical conditions, USDJPY has a strong chance of continuing its rise and testing the next resistance level at around 156.880.
Technical Reference: buy as long as above 155.870
Potential Take Profit 1: 156.715
Potential Take Profit 2: 156.880
Potential Stop Loss 1: 155.035
Potential Stop Loss 2: 155.870
