Recovery in the FX pair has been observed in the previous week, FX closing close to above 155.000.
Continuing previous weeks trend, moderate volatility in the FX market may be expected as the primary scenario.
USD/JPY hourly chart analysis
The USD/JPY is currently around 154.60 after a recent bullish run from February 17th to 20th. It's now in a corrective phase, squeezed between the 50-period SMA at 154.60, acting as resistance, and the 100-period SMA around 154.38, providing support. The 200-period SMA at 153.77 suggests the longer-term trend is still bullish. The RSI is 44.45, showing neutral to slightly bearish momentum after retreating from overbought levels on the 19th. If the price breaks above the 50-period SMA, it could move back toward the recent high at 155.39, but dropping below 154.05 may lead to a test of the 200-period SMA at 153.77.Hourly Chart
USD/JPY daily candle chart analysis
USD/JPY is currently in a consolidation phase with a slight bearish bias after retreating from recent highs near 160.00. Price action is caught between key moving averages, indicating indecision between buyers and sellers. The 50-day SMA around 155.91 is acting as immediate resistance, suggesting short-term momentum is stalling, while the 100-day SMA near 154.57 serves as the pivot for the current range. The 200-day SMA at 150.69 continues to define the long-term bullish trend. Candlestick patterns with long lower wicks indicate that buying interest remains whenever the price approaches 152.00. On the upside, a break above 156.00 could push the pair toward 158.00 and test the psychological 160.00 level, while failure to hold 153.56 may see the pair drift down to the 200-day SMA around 150.70, potentially signaling a trend reversal.
Read More: Technical Analysis
Traders sentiment
USD/JPY is currently bearish, with 62.88% of traders holding short positions compared to 37.12% in long positions. This negative outlook is reinforced by a significant 25.76% drop in long sentiment, indicating a recent shift toward expecting the pair to decline. Despite this bearish retail sentiment, the market price has remained relatively stable.