The USDJPY currency pair has started to exhibit signs of recovery after successfully breaking through the upper boundary of a bearish channel on the 1-hour time frame. This breakout serves as an initial signal that selling pressure is diminishing, thus paving the way for a stronger upward movement. The Moving Average indicator has now begun to trend upwards, providing additional support for the shift in momentum, while the ZigZag pattern breaching the channel resistance reinforces the transition of the trend toward a bullish phase. This combination of technical structures illustrates that buyers are entering the market more aggressively, which increases the potential for further gains in the near future.
The bullish momentum strengthens even further as the MACD indicator remains in positive territory, indicating that buying pressure is surpassing that of the sellers. As long as the price stays above the breakout channel area, the opportunity for USDJPY to continue its ascent remains viable. This solid technical momentum creates room for the price to test the nearest resistance, supporting the scenario that the short-term trend of USDJPY could shift into a bullish phase if buying interest persists.
Recommended
Recommended
Recommended
Recommended
As the Bollinger Bands start ascending on the 15-minute time frame, this indicates a renewed strength in bullish momentum for the USDJPY. The price structure forming an upward trend further emphasizes the dominance of buyers, creating opportunities for prices to continue the short-term rally. With a directed trend and stable buying pressure, the USDJPY could potentially challenge the nearest resistance around 156,400 if this strengthening momentum persists.
Technical Reference: buy as long as above 155,600
Potential Take Profit 1: 156,225
Potential Take Profit 2: 156,400
Potential Stop Loss 1: 155,770
Potential Stop Loss 2: 155,600
