The USDJPY currency pair has displayed increasingly bullish technical signals after successfully breaching the upper boundary of the previously established bearish channel that constrained its price movement. This breakout coincides with the formation of a Higher Low (HL) and Higher High (HH) structure on the 1-hour time frame, indicating a trend reversal from downward to upward. Buying activity is starting to dominate the market, suggesting that the demand for the Yen as a safe haven is beginning to weaken, while the strength of the US Dollar is on the rise.
Additional support is observed from the Moving Average (MA) indicator, which is now trending upwards, reinforcing the short-term bullish trend structure. Furthermore, the MACD is situated in positive territory with a strengthening histogram, affirming that the current buying momentum remains robust. Should this sentiment persist, USDJPY may continue its ascent towards the next resistance area, while keeping an eye on potential minor corrections as part of a healthy upward trend.
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The USDJPY also exhibits short-term upside potential following the establishment of a bullish trendline that consistently curtails selling pressure on the 15-minute time frame. The upward trajectory of the Moving Average (MA) along with a zigzag pattern forming higher lows reinforces the signal that the market structure is shifting towards the buyers. The combination of these three technical elements offers strong support for the likelihood of a continued upward trend, with the possibility for USDJPY to break through the nearest resistance and continue its rally if buying momentum remains strong, testing the resistance level at 145.530.
Technical Reference: buy while above 144.670
Potential Take Profit 1: 145.335
Potential Take Profit 2: 145.530
Potential Stop Loss 1: 144.855
Potential Stop Loss 2: 144.670
