USD/JPY H4 Market Analysis USD/JPY is trading around 163.71 on the H4 chart after an impressive bullish rally from the 162.00 region. Buyers remain in control, but recent price action suggests the market is entering a consolidation phase just below the 164.00 resistance zone. The strong upward momentum has slowed, with several candles forming narrow ranges, indicating that traders are waiting for the next major catalyst before committing to fresh positions. The recent breakout above 163.00 attracted strong buying pressure and pushed the pair to fresh short-term highs. However, repeated rejection near 163.90–164.00 shows that sellers are defending this area aggressively. Despite these rejections, bulls have successfully maintained higher lows, which keeps the overall trend positive on the H4 timeframe. The Bulls indicator remains in positive territory, although its histogram has started to decline. This signals that bullish momentum is easing but has not completely disappeared. As long as the indicator stays above the zero line, buyers still have an advantage. A fresh increase in buying pressure could trigger another attempt to break above the current resistance. On the downside, immediate support is located around 163.50, followed by the stronger support near 163.20. Holding above these levels would preserve the bullish market structure. A decisive break below 163.20 could lead to a deeper correction toward the 162.80–162.50 area before buyers return. If USD/JPY closes above 164.00, the next upside targets could be 164.30 and 164.70, extending the existing bullish trend. Conversely, failure to overcome resistance may keep the pair moving sideways until stronger market direction emerges. Traders should monitor price behavior around the current resistance and wait for confirmation before entering new positions. Breakout traders may look for sustained buying above 164.00, while range traders could continue focusing on support and resistance until volatility increases. Proper risk management remains essential, especially with potential economic news capable of triggering sharp price swings in the currency market.
