+0.50% for US Dollar vs Yen as price stays above SMA-20 and session highs

Traders Union
All News
Financial News
US Dollar vs Yen gains 0.50% today

Highlights

USD/JPY maintains a bullish medium- and long-term trend, trading near resistance at ¥158.70 as buyers dominate.
Momentum signals are mixed short-term, with indicators suggesting overbought conditions and a weak underlying trend.
Expect consolidation between ¥156.80 and ¥158.70 over the next five days, with strong upside probability above resistance.

Mixed momentum signals as price tests resistance with weak trend

Momentum signals are mixed: on the daily chart, MACD and RSI continue to show bullish alignment, while the ADX reading of 15.25 points to a weak trend and Stoch RSI signals oversold conditions. BBP stands at an overbought level of 1.12, suggesting buyers are still in control but may be nearing exhaustion, and the Awesome Oscillator is neutral. The Ichimoku Kijun level on D1 is at ¥157.05, which acts as key support beneath the current price. Intraday volatility remains subdued, and with the pair hovering at session highs, price strength is pressing into resistance, though not all momentum indicators are fully aligned — reflecting short-term caution inside the prevailing bullish bias.

Further gains likely as technical bias favors consolidation

Over the next five trading days, the pair is likely to remain within a typical volatility band between ¥156.80 and ¥158.70. With three out of four key weekly signals (RSI, MACD, and the SMA-50) indicating Buy or Strong Buy, the probability of further gains remains high — above 80% — while the chances of a decline are minimal. Baseline expectation is for USD/JPY to consolidate within this band. A firm break above ¥158.70 could spark a test of new highs, while a drop below immediate support at ¥157.05 might open the way to ¥156.80, though this remains an unlikely scenario unless momentum deteriorates significantly.

Viktoras Karapetjanc, expert at Traders Union, sees the USD/JPY pair maintaining a strong bullish bias. He notes that momentum signals are not entirely unanimous, but the technical structure and sentiment remain constructive. With robust support holding and price pushing session highs, Karapetjanc believes the risk of a pullback is low in the near term. He expects further gains if resistance is cleared. "As long as the pair remains above ¥157.05, the path of least resistance is to the upside and buyers have the advantage."

Earlier, analysts noted that USD/JPY maintained a bullish posture, supported by persistent upside momentum and a robust technical backdrop. The latest indicators reinforce this constructive view, but with signs of waning trend strength and overbought conditions accumulating, traders should be alert for any momentum shift as a catalyst for a potential retracement.

Source of Data: USD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.