Title: USD/JPY Seeks Higher Low as Bullish Momentum Builds – Market Analysis (September 29, 2025)
Original article by Economies.com
As the trading week concludes, the USD/JPY pair continues to demonstrate signs of bullish strength, indicating a possible search for a higher low before resuming the upward trajectory that has been defining price action in recent weeks. With technical indicators and daily candlestick structure aligning in favor of the bulls, investors remain focused on key support and resistance levels that may dictate the next wave in price dynamics. Below is a comprehensive breakdown of the USD/JPY outlook for September 29, 2025, based on the original analysis published by Economies.com.
Technical Overview: Formation of a Higher Low
The USD/JPY pair is currently working to form a higher low within the ongoing bullish structure. This pattern is a classic indicator of a healthy uptrend as the market attempts to establish a new floor above previous lows, building strength for potential further upward movement.
– Recent price action has shown a slight pullback following a rally that pushed the pair to multi-month highs.
– The pair declined modestly to retest underlying support, yet bulls quickly reclaimed control, hinting at strong buyer interest in the 148.00 region.
– Price remains comfortably above the 50-Day Exponential Moving Average (EMA), which supports the case for continued upward momentum.
– The anticipated higher low suggests the market is in a consolidation phase before staging a fresh bullish wave.
Support and Resistance Levels to Watch
As the pair continues to navigate the bullish path, key price levels play essential roles in confirming or invalidating the current trend structure.
Support Levels:
– 148.00: Serves as new support following the breakout of this psychological level. Buyers have repeatedly defended this area.
– 147.10: Represents a stronger support floor, aligning with the 50-Day EMA. A drop below here could challenge the bullish outlook.
– 146.30: This level provided a base in the recent past and could act as a final defense line for bulls.
Resistance Levels:
– 149.70: The current upside target and resistance zone. A move above this could fuel further gains in the direction of 150.00.
– 150.30: A longer-term resistance that may cap the next leg higher. Traders would likely monitor this zone for signs of rejection or breakout.
– 151.00: A major psychological barrier and multiyear high, breaking above this could signal a continuation of the broader uptrend.
Momentum and Indicator Analysis
Technical momentum indicators further strengthen the bullish outlook by identifying overbought and oversold conditions, signaling whether the prevailing trend might persist or reverse.
Key Indicator Observations:
– RSI (Relative Strength Index) hovers in the 60–70 range, showing strong bullish momentum but not yet overbought. This offers room for the price to climb further.
– MACD (Moving Average Convergence Divergence) lines continue to trend above the signal line, indicating no meaningful bearish crossover.
– Stochastic Oscillator aligns with the idea of a near-term retracement, but remains supportive of the broader bullish outlook.
– The bullish alignment of moving averages, especially the 20-Day EMA crossing above the 50-Day EMA earlier in September, further confirms trend continuation.
Price Patterns and Candlestick Observations
Beyond indicators, candlestick formations on the daily chart offer insight into market sentiment and potential swing points.
– On Wednesday and Thursday, long-tailed candlesticks formed on the daily chart, reflecting renewed buying interest near key support levels.
– A potential bullish engulfing pattern appeared earlier in the week, signaling a reversal from recent pullbacks.
– Price structure remains within a classical ascending channel, with higher highs and higher lows confirming trend integrity.
Fundamental Backdrop Supporting USD Strength
The broader macroeconomic environment supports continued strength in the US dollar, relative to the Japanese yen, due to several underlying factors.
– Diver
Explore this further here: USD/JPY trading.