The USDJPY pair has begun to display early signs of strength on the 1-hour chart after successfully bouncing back from its lowest point and breaking through the bearish channel’s resistance. This movement indicates a shift in short-term sentiment, where the previously dominant selling pressure is easing and buying interest is emerging again. The successful exit from the downtrend suggests that the bearish momentum is losing its grip, thereby creating opportunities for further strength in tonight’s US session.
From a technical standpoint, the potential rise of USDJPY is confirmed by the Moving Average, which is starting to trend upwards, alongside a ZigZag pattern forming higher highs and higher lows. This combination of signals indicates the development of a healthier upward structure, granting USDJPY the momentum to continue gaining ground. As long as the price remains above the breakout area and does not re-enter the bearish channel, the movement bias is expected to remain positive during the US session tonight.
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Meanwhile, the USDJPY price movement is still maintaining its position within a bullish channel, indicating that the upward trend is still intact. The breach of the resistance from the Bollinger Bands further strengthens the dominance of buyers and provides technical confirmation of the ongoing bullish momentum. With this support, USDJPY is well-positioned to extend its gains to test the resistance level at 157.965, coinciding with heightened volatility in tonight’s US session.
Technical References: buy while above 156.715
Potential Take Profit 1: 157.740
Potential Take Profit 2: 157.965
Potential Stop Loss 1: 156.980
Potential Stop Loss 2: 156.715
