FX pair moved to the upside, closing above 160.315.
Volatility may occur, taking considering fundamental data releases from US and Japan.
USD/JPY hourly chart analysis
USD/JPY on the 1-hour chart is moving within a clear ascending channel, forming higher highs and higher lows since March 20, with price now testing support around 159.65.The structure still favors buyers for now. Price is sitting near the 50 SMA, which is acting as immediate support, while the 100 SMA at 159.40 and the 200 SMA at 159.15 provide deeper support levels. The RSI around 37 shows the recent pullback has cooled momentum, bringing the pair closer to a neutral-to-oversold zone rather than overbought. If the trend continues, holding above 159.65 or dipping slightly into the 159.40 area could trigger a bounce, keeping the channel intact.On the downside, a clear break below the channel and especially below 159.15 would weaken the bullish structure and suggest a shift toward a bearish trend.
Hourly Chart
USD/JPY daily candle chart analysis
USD/JPY on the daily chart remains in a strong uptrend, continuing the bullish momentum seen through February and March. The pair recently pushed above the key 160.00 level but is now pulling back slightly as the market pauses after reaching multi-year highs.The overall structure is still clearly bullish. Price is well above the SMAs, all of which are trending upward, showing strong underlying momentum. The trend has been forming a steady pattern of higher highs and higher lows, with previous resistance levels turning into support.
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Traders sentiment
USD/JPY sentiment is currently bearish, with only about 36% of traders holding long positions while roughly 64% are short. This imbalance suggests the market is leaning against the recent uptrend, often seen as a contrarian bullish signal.