FX.co ★ USD/JPY

USDJPY TECHNICAL ANALYSIS Chart Overview The chart shows USDJPY price action from early Nov 2025 to Dec 2025 with candlesticks, a moving average (red line), RSI(14) at 50.60, and volume bars at the bottom. The current price is 154.97, sitting near a key resistance zone. Support & Resistance Analysis 1. *Resistance*: The upper zone around 155.95–156.00 has capped recent bullish moves. The red moving average acts as dynamic resistance near 155.30. If the price breaks and holds above 156.00, we could see a push toward 158.00. 2. *Support*: The nearest support lies at the previous swing low near 153.25 (blue trend line). Below that, the 152.50 area could act as a stronger floor. The moving average also flips to support around 154.60 when price stays above it. Volume Indicator Interpretation Volume spikes align with bullish candles in early November, showing strong buying interest that pushed the pair up. Recent volume has tapered, indicating weakening momentum on the latest moves. A surge in volume with a breakout above resistance would confirm a valid upward shift; otherwise, low volume near resistance suggests caution for false breaks. RSI (14) Analysis The RSI sits at 50.60, hovering around the neutral zone. It has been trending down from a prior overbought region, signaling fading bullish strength. If RSI climbs above 60 with price action, it would back a bullish continuation. A dip below 40 would warn of bearish momentum and possible reversal toward support. Market Prediction Based on TA The chart hints at a *consolidation phase* with a bias toward a potential breakout. *Bull scenario*: Break & hold above 156.00 on rising volume + RSI > 60 → target 157.50–158.65. *Bear scenario*: Fail at resistance + RSI slips < 40 → expect pullback to 153.25 support. Risk Management Strategies 1. *Position sizing*: Risk no more than 1–2% of your account on a single trade. For a $10,000 account, that’s $100–$200 per trade. 2. *Stop-loss placement*: Set SL just below the nearest support (e.g., 153.00) for longs, or above resistance (156.20) for shorts, to avoid premature exits. 3. *Risk/reward ratio*: Aim for at least 1:2. If you enter at 155.00 with a 153.00 SL, target should be ≥ 159.00.

Money Management Tips *Diversify exposure*: Don’t over-leverage one pair; spread capital across multiple trades. *Adjust position size* based on volatility – wider stops in volatile pairs need smaller size to keep risk constant. *Trade journal*: Log entries, exits, and rationale to refine your strategy and avoid repeat mistakes. Action Plan 1. *Watch* the 155.95 resistance for a clean breakout with volume boost. 2. *Confirm* with RSI moving above 60 for bullish momentum. 3. *Enter* long if breakout confirmed; place SL at 153.25 and target 158.65. 4. *Manage* risk by sizing the position to limit loss to 1% of capital.