FX.co ★ USD/JPY

USD/JPY Daily Chart Analysis USD/JPY remains in a strong bullish structure on the daily timeframe, with price currently trading around 161.59 after successfully reclaiming and holding above the key horizontal level near 160.71. The chart shows a clear continuation of higher highs and higher lows, confirming that buyers still control the broader trend. I can see that the market recently formed an RBS area before pushing higher, which indicates that previous resistance has now turned into support. The marked MSS near the recent highs suggests that bullish momentum strengthened after the market shifted structure to the upside. Although price is trading close to a significant resistance zone around 162.00, the current candle behavior still favors buyers as long as the pair remains above the highlighted support region around 159.70–160.00. I believe this area is important because it aligns with the projected retracement zone and could attract fresh buying interest if a pullback develops. The recent bullish candles also show consistent demand, suggesting that market participants are willing to buy dips rather than aggressively take profits. From a technical perspective, the breakout above 160.71 remains valid while daily closes continue to hold above this level. Looking ahead, the chart projection indicates a possible retracement toward the marked support block before another bullish expansion. I think a pullback into the purple demand zone would be a healthy correction rather than a bearish reversal. If buyers defend this region successfully, USD/JPY could resume its upward move and target the 163.50–165.00 area in the coming weeks. The rising trendline and the marked TL LIQ beneath price suggest that liquidity remains available below the market, meaning temporary downside movement cannot be ruled out before the next bullish leg begins. However, the overall structure still favors continuation to the upside because the latest MSS occurred in the direction of the prevailing trend. I am watching the reaction around 159.70–160.00 closely, as a strong bullish response there would reinforce the current outlook. On the other hand, if price breaks and closes decisively below this support zone, the pair could extend lower toward the ascending trendline near 158.00–158.50 before buyers attempt another recovery. Until that happens, the daily trend remains bullish, and the chart continues to support a higher-probability scenario of accumulation followed by a move toward fresh highs above 164.00.

USDJPY 4H Technical Analysis USDJPY remains in a clear bullish structure on the 4H chart, and I still see buyers maintaining overall control despite the recent consolidation below 162.000. Price is trading around 161.750 after a strong impulsive rally that started from the OB+FVG area near 160.300-160.600. The BOS sequence marked on the chart confirms that market structure continues to favor higher prices, while the RBS zone around 160.600 has now become an important support level. I believe the current sideways movement is simply a pause within the existing uptrend rather than a confirmed reversal. Volume has decreased compared with the impulsive expansion, which often suggests that sellers are lacking strong commitment while buyers are waiting for a better entry. As long as price remains above the RBS and the highlighted OB+FVG, I will continue to view dips as buying opportunities instead of expecting an immediate bearish trend. The projected retracement toward 160.600 and even the marked level around 160.397 would fit well with a healthy correction before continuation. If buyers defend that buying zone and produce another bullish reaction with fresh BOS, I expect price to challenge 161.900 first and then attempt a move toward 162.300 and possibly 162.600. The overall trend remains intact, and I do not see any major structural damage at the moment.

From my perspective, patience is important because chasing price after such a strong rally increases risk. I would rather wait for price to revisit the buying zone shown on the chart where the OB+FVG overlaps with the previous RBS support. That confluence gives the area more technical significance and could attract institutional buying interest once again. If the retracement reaches 160.600 to 160.397 with decreasing bearish volume and then prints a bullish confirmation candle followed by another BOS, I would consider that a stronger long opportunity than entering at current levels. On the other hand, if price closes decisively below the OB+FVG and fails to reclaim the RBS zone, then the bullish outlook would weaken and a deeper correction toward 160.000 could become possible before buyers regain control. For now, however, I continue to respect the higher highs and higher lows that define the existing trend. I believe the market is building liquidity during this consolidation, and if buyers successfully absorb selling pressure near support, the next impulsive expansion could extend beyond the recent high. Until market structure changes, I remain biased toward bullish continuation while using the marked buying zone as the key decision area for the next trading opportunity.