FX.co ★ USD/JPY

USDJPY H4 Technical Outlook – Strong Recovery Testing Key Resistance Zone The USDJPY H4 chart is currently showing a strong bullish recovery after a sharp corrective phase, with price now approaching an important resistance level near the 157.50 zone. This area previously acted as a significant support-turned-resistance, making the current price reaction highly important for determining the next directional move. After forming a clear bottom around the 152.70 region, buyers stepped back into the market with consistent higher lows and impulsive bullish candles. The structure has shifted from bearish correction to a short-term bullish trend, supported by price reclaiming both moving averages. The faster moving average has started turning upward while price trades above it, indicating strengthening bullish momentum in the short term. One notable factor is how smoothly price respected dynamic support during the climb. Every pullback remained shallow, suggesting strong buying pressure rather than speculative spikes. This type of recovery often signals accumulation rather than temporary retracement.

However, the current resistance around 157.50 remains a decisive level. Historically, this zone has produced rejection wicks and selling pressure, so traders should watch for confirmation before expecting continuation. A clean H4 candle close above this level could open the path toward 158.20 and potentially 159.00, where previous highs are located. On the other hand, rejection from this resistance may lead to a healthy pullback toward 156.20 or even the moving average support near 155.80 before another bullish attempt. Volume behavior and candle strength near resistance will be key signals. Breakouts supported by momentum usually show strong candle bodies rather than long upper wicks. Patience at this stage is essential because entering directly into resistance carries higher risk. Overall, market structure favors buyers for now, but confirmation above resistance is required to validate further upside continuation. Traders should focus on price behavior at this level rather than predicting direction prematurely, allowing the market to reveal its next move through clear confirmation.