USD/JPY Technical Update: Bullish Breakout & Key Resistance Zones
USD/JPY Technical Update: Bullish Breakout & Key Resistance Zones
Over the past 7 trading days, USD/JPY has surged from 146.63 to 152.63, hitting a new yearly high. Strong US economic data, fading haven demand, and the BOJ’s dovish stance have fueled sustained yen weakness. Technicals indicate dominant bullish momentum with no sign of a reversal yet.
The daily chart shows a classic bullish formation: moving averages (short, medium, and long) are all rising and recently completed bullish crossovers. Bollinger Bands are expanding with price riding near the upper band for several sessions, a sign of strong momentum but potential overbought conditions. MACD remains above the zero line with widening histogram bars and a clear bullish divergence between fast and slow lines. The last eight sessions feature back-to-back bullish candles with only minor pullbacks, illustrating firm buying power.
Hourly chart analysis reveals relentless short-term bullish momentum. Price forms stair-step advances with each breakout, supported by rising short-term averages. Multiple intraday pullbacks show ‘long lower wick’ and ‘engulfing’ patterns as buyers quickly absorb dips, and lows are steadily climbing. MACD shows mild negative divergence but no confirmed bearish cross yet, while Bollinger Bands remain wide as volatility persists. Volume rises in tandem with price surges.
Current technical structure remains firmly bullish, though the risk of consolidation or a minor pullback increases after such a strong run. Overbought conditions signal potential for profit-taking, but as long as critical support levels hold, the trend looks set to continue. High volatility and persistent volume reflect strong market conviction. With yen fundamentals still weak and no heavy intervention, the bias remains upward, but traders should be alert to headline-driven swings.
The prevailing trend is clearly bullish, with no reversal signals present.
Resistane(1): 152.63Resistane(2): 153.00Resistane(3): 154.20Support(1): 151.00Support(2): 150.32Support(3): 149.45
