Bullish Momentum Drives USDJPY Higher

USDJPY Bulls Eye Higher Resistance Levels

USDJPY, often regarded as a key indicator of market sentiment between the U.S. Dollar and the Japanese Yen, reflects the contrast between the USD’s strength backed by a robust U.S. economy and the JPY’s status as a safe-haven currency with historically low interest rates. The USDJPY pair on the H4 chart shows a clear bullish trend as it continues to trade above key support levels, with price action forming higher highs and higher lows. The pair is currently testing a resistance level at 152.800, with further resistance at 153.000 if the uptrend persists. The price remains above the Ichimoku cloud, a strong indication that bullish momentum is intact, while the RSI hovers near 58, indicating room for further upside before reaching overbought conditions. Despite the upward momentum, a break above the immediate resistance would solidify the bullish outlook.

Chart Notes: 
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
Fundamental pressures add to the bullish outlook, with stronger-than-expected U.S. inflation data supporting the USD, particularly the Core PCE Price Index at 0.3% versus 0.1% expected, which bolsters the likelihood of a hawkish stance from the Federal Reserve. Meanwhile, the Bank of Japan’s decision to maintain its ultra-low policy rate contrasts sharply with the Fed’s approach, putting further pressure on the JPY. Any retracement attempts may find support at 151.450 and 148.900, but the prevailing uptrend remains strong unless there is a shift in economic sentiment or a technical reversal signal.

•DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.