The USDJPY currency pair has begun to exhibit increasingly robust signs of a trend reversal, having successfully surpassed a crucial resistance level that had previously constrained its movement within a bearish channel. This significant breakout above that level signifies a shift in market dynamics from selling pressure to buyer dominance, indicating that the trend structure is gradually leaning towards a bullish state. The rising direction of the Moving Average further bolsters the notion that the momentum for an upward movement is gaining substantial traction.
Further confirmation of this strengthening trend can be observed through the MACD movement, which has now entered positive territory, reflecting an increase in buying momentum and a more matured bullish trend. The breakout, in conjunction with ascending Moving Averages, provides a strong technical confirmation that the potential for USDJPY to rise remains intact on the 1-hour timeframe. As long as buyers can maintain their pressure, the opportunity to move towards the next resistance level remains wide open for the upcoming trading sessions.
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On the 15-minute timeframe, USDJPY shows further potential for increases as the price resides in the lower zone of the Bollinger Bands, which often serves as a rebound area during an uptrend. Concurrently, the CCI has reached oversold levels, indicating waning selling pressure. The combination of these two technical signals opens the door for a price recovery in the short term, positioning USDJPY to continue rising and potentially test the nearest resistance zone at 157,080.
Technical Reference: buy while above 156,930
Potential Take Profit 1: 156,930
Potential Take Profit 2: 157,080
Potential Stop Loss 1: 156,340
Potential Stop Loss 2: 156,180
