Title: USD/JPY Moves Higher After Hitting Target – Technical Analysis (Adapted from Economies.com, Published on September 18, 2025)
Original Author: Economies.com Analyst Team
Source: https://www.economies.com/forex/usd-jpy-analysis/the-usdjpy-rises-after-reaching-our-expected-target–analysis-18-09-2025-121218
The USD/JPY currency pair exhibited a positive movement during recent sessions, breaching our previously suggested target of 148.00, confirming the continuation of the bullish trend initiated earlier this month. The upward movement affirms that market momentum is still favoring the American dollar against the Japanese yen, largely influenced by macroeconomic fundamentals and technical indicators signaling upward strength.
The following report provides an extended and detailed technical analysis of the USD/JPY pair, supported by chart indicators, investor sentiment, trend projections, and potential future scenarios based on current price action. This comprehensive outlook aligns with the original article published by Economies.com.
Current Technical Overview
As of the latest session, the USD/JPY pair has displayed the following behavior:
– Price has surpassed the previously identified resistance of 148.00
– The breach confirms the ongoing bullish structure
– The next projected targets are in sight at the levels of 149.20 and 150.50
– Market structure supports a continuation of the upward trend over the short to medium-term
Price Movement Summary
The pair’s movement on the intraday charts reflects strong momentum, supported by technical indicators such as moving averages and oscillators, particularly:
– USD/JPY has stabilized above the 50-period Exponential Moving Average (EMA), indicating sustained upward momentum
– Relative Strength Index (RSI) remains near 60, supporting a bullish sentiment without reaching overbought levels
– Bullish candlestick patterns have confirmed buyers’ control over recent trading sessions
Support and Resistance Levels
The following technical zones are expected to act as critical points for price action in the coming sessions:
Support Levels:
– 148.20: Recently broken resistance now acting as the first major support
– 147.60: Technical foothold provided by the 50-period EMA, expected to offer strong buyers’ interest
– 146.80: Key mid-term support and last level of major reversal on the daily chart
Resistance Levels:
– 149.20: Short-term resistance level and initial target for bulls
– 150.50: Target for medium-term upside potential if upward pressure sustains
– 152.00: Psychological resistance zone likely to invite profit-taking and market hesitation
Trend Analysis and Implications
After consolidating around the 147.00 handle earlier this month, the pair formed a base, followed by sustained upward movement. This move suggests that bullish dominance is being reinforced by a combination of both technical and fundamental factors.
The current trend shows the following:
– Definition of higher highs and higher lows on hourly and 4-hour charts
– Validation of bullish flag patterns that previously formed during consolidation
– A strong upward slope in moving averages, providing additional trend confirmation
Market Sentiment and Momentum Indicators
The strength of the upward movement in USD/JPY correlates with broader gains in the U.S. dollar across FX markets. DXY (U.S. Dollar Index) regained strength after recent U.S. economic reports signaled resilience in inflation control and labor market stability.
Supporting technical and sentiment indicators include:
– MACD (Moving Average Convergence Divergence): Bullish crossover occurred earlier in the week; histogram bars are increasing, showing momentum favoring the bulls
– Stochastic Oscillator: Shows mild overbought conditions, but no bearish divergence has yet appeared, indicating trend longevity
– Volume Analysis: Increased trading volume on upward price moves underscores bullish market participation
Fundamental Drivers of USD/JPY’s Upward Trend
Beyond technical components, several fundamental aspects are contributing to this bullish movement:
U.S. Economic
Explore this further here: USD/JPY trading.