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USD/JPY Technical Outlook: 159.70 Resistance Keeps the Recovery Under Pressure USD/JPY is trading around 158.855 on the 4-hour chart after a dramatic decline from the 164.00 region. The pair has recovered substantially from the sharp sell-off toward 155.50, but the rebound has stalled below 160.00. Price is currently moving sideways between roughly 158.00 and 159.70, leaving the short-term structure neutral-to-bearish while the larger chart remains dominated by the earlier breakdown. The major structural event was the aggressive sell-off from the 163.80–164.00 supply zone. Price broke sharply through the 162.00 area and continued lower, eventually reaching approximately 155.50. Buyers then produced a strong recovery, reclaiming 157.00 and 158.00 before reaching the 159.50–159.70 region. However, the rebound has not yet recovered the level where the previous decline began. This means the broader bearish structure remains intact despite the substantial recovery. Liquidity is particularly important around the current range. The chart marks Dliquidity near the recent highs around 159.50–159.70, while 2 Bottom Liq is visible around the 158.20–158.40 region. There is also a marked FVG around 157.80–158.70, created during the earlier recovery phase. These areas provide a useful roadmap: the upper liquidity zone represents potential selling pressure, while the lower liquidity and FVG areas could become targets during a deeper retracement. The immediate resistance is 159.50–159.70, with 160.00 acting as the next psychological barrier. On the downside, 158.20–158.40 is the first important support zone, followed by the broader FVG around 157.80–158.70. A deeper structural support area is visible near 155.50–155.70, although reaching it would require a much larger reversal. The primary scenario favors sellers if USD/JPY continues rejecting 159.50–159.70 and breaks below the current consolidation. A confirmed move beneath 158.20–158.40 could expose the 157.80–158.00 region, with the lower portion of the FVG becoming a potential target. The bearish setup would weaken if price establishes a sustained breakout above 159.70, particularly if 160.00 is subsequently reclaimed. The alternative scenario is bullish continuation. A decisive break above 159.70 followed by a successful retest would signal that buyers are finally overcoming the upper liquidity area. That could open the way toward 160.00 and potentially higher levels. Until that breakout occurs, the recovery remains capped beneath major resistance, making rejection or confirmed support breaks more important than chasing price inside the range.