Over the month of May FX pair has recovered form 155.000 lows
to almost 160.000.
Elevated volatility may rise towards end of week and continue
in the next week taking in consideration fundamental data releases regarding Japan's
GDP numbers and monetary base data, also scheduled Bond Purchases may further
rise volatility.
USD/JPY hourly chart analysis
USD/JPY is trading in a highly constructive ascending
channel, currently consolidating at 159.736 right against the upper trendline
resistance and the 159.800 barrier. This tight, intra-day consolidation is
backed by a rising 20-period SMA at 159.663 acting as immediate dynamic support
and an elevated RSI of 67.251 that signals robust bullish momentum. A
decisive hourly break above this channel ceiling will likely trigger a rapid
extension into the critical 160.000 psychological milestone, while any temporary
rejection at this upper boundary should keep pullbacks shallow and
well-supported near the mid-channel structural zone around 159.400.
Hourly Chart
USD/JPY daily candle chart analysis
USD/JPY maintains a solid bullish posture as it grinds upward toward the critical 160.000 psychological resistance level, supported by a rising 20-day SMA at 158.392 and a healthy RSI (20) reading of 58.917 that leaves plenty of room for further upside. While the pair has steadily recovered from its volatile early-May drop, a decisive daily break above 160.000 is required to unlock further extension targets toward 160.500 and 161.000; conversely, any near-term rejections at this ceiling are likely to find reliable structural demand on pullbacks toward the 158.400–157.700 support zone.
USD/JPY sentiment is primarily bearish.