After an earlier attempt to continue the downward pressure, USDJPY has failed to establish a new Lower Low, indicating a potential shift in direction. This situation presents an opportunity for a formation of a secondary bullish trend, confirmed by the recent price structure that is starting to create a Higher High (HH) and Higher Low (HL). This serves as an early signal that the strength of the buyers is beginning to regain market dominance following a correction phase.
The technical support is bolstered by the current price being above the Moving Average line, along with the MACD indicator still reflecting positive momentum on the 1-hour time frame. As long as the HH-HL structure is maintained and the technical indicators do not show any significant weakening, USDJPY may have the potential to continue its upward momentum.
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The bullish structure in USDJPY remains clearly visible on the 15-minute time frame, marked by a consistent series of higher highs and higher lows. The Zigzag indicator also confirms this upward pattern, strengthening the belief that the short-term trend is still under the control of buyers. As long as prices hold above the nearest support area, the potential for further strengthening remains wide open, making the buy on dip strategy a consideration for traders. The potential upside for USDJPY hovers around the previous resistance level of 145.450.
Technical Reference: buy as long as above 144.430
Potential Take Profit 1: 145.265
Potential Take Profit 2: 145.450
Potential Stop Loss 1: 144.610
Potential Stop Loss 2: 144.430
