**USD/JPY Regains Upward Momentum: In-Depth Technical Analysis – July 28, 2025**
*Original Source: Economies.com*
*Author: Economies.com Analyst Team*
The USD/JPY currency pair demonstrated notable resilience by stabilizing above key support levels in recent sessions, signaling a shift away from prior bearish pressure. As it rebounds from lower pullbacks and regains an upward trajectory, technical indicators now suggest that bullish momentum may dominate the pair’s performance in upcoming trading sessions. This article provides a comprehensive breakdown of current price actions, key technical signals, and strategic outlooks for USD/JPY in the short to mid-term.
## Key Technical Highlights
The pair’s recent movements showcase growing bullish sentiment as it lifts itself from moderately bearish territory:
– **Price Rebound Confirmation**: USD/JPY successfully remained above the 140.90 level, confirming a price stabilization zone and marking the end of its previous correctional decline.
– **Bullish Channel Structure**: The pair is currently navigating within a well-defined short-term ascending channel that started building momentum after bouncing from the 137.00–138.00 support area earlier in the month.
– **Positive Technical Indicators**: Technical oscillators, particularly the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), reinforce the bullish bias.
These technical signals suggest a higher probability that upward movements will continue unless unexpected economic catalysts emerge to change the trajectory.
## Moving Averages and Price Positioning
Examining the role of moving averages in the current setup reveals further insight into market sentiment:
– **50-Day Simple Moving Average (SMA)**: Price levels remain well above the 50-day SMA, which is currently positioned around the 139.20 mark. This suggests that short-term buyers hold control.
– **100-Day SMA**: The pair is also trading above the 100-day SMA near 136.80, confirming a broader medium-term uptrend.
– **200-Day SMA Outlook**: Situated near 133.50, the 200-day SMA continues to serve as a firm foundation for the longer-term bullish trend.
Moving averages are aligned in such a way that they project a “bullish stacking pattern,” signaling continued upward momentum unless disrupted by high-impact news.
## Volume Dynamics and Market Participation
Though forex trading does not occur on centralized exchanges, analysis of tick volume through platforms such as MetaTrader 4 or TradingView indicates robust buying pressure:
– **Volume Peaks During Price Spikes**: Each upward move has been accompanied by above-average tick volume, confirming strong market participation by institutional traders and retail investors.
– **Higher Lows on Volume**: The pattern of rising lows in volume supports sustained bullish momentum without signs of divergence or volume depletion.
The presence of consistent buy volume during dips strengthens the expectation for further upside.
## Resistance and Support Levels
Traders focusing on key zones must monitor these critical price areas:
– **Immediate Resistance**: The area near 143.00 and 143.70 presents the next serious resistance level. A confirmed breakout above this range could signal a continuation toward year-to-date highs.
– **Higher Resistance Targets**:
– 144.80: Last seen as a topping region in Q2 2025.
– 146.20: The psychological zone and prior swing high.
– 147.80 – 148.30: Long-term resistance marking potential reversal zones if achieved.
– **Key Support Areas**:
– 140.90: Serves as near-term support confirmed by recent consolidation.
– 139.50: Located near 50-day SMA and acts as a technical cushion.
– 137.80 – 138.10: Major demand zone formed over the past 60-day period.
Should the pair violate the 140.90 support, it may test lower bounds, though probabilities favor the upside based on current indicators.
## Fibonacci Retracement
Explore this further here: USD/JPY trading.