Title: USD/JPY Price Analysis: Caught Between Resistance and Support
Original Author: Economies.com Analysis Team
Source: https://www.economies.com/forex/usd-jpy-analysis/the-usdjpy-is-between-hammer-and-anvil–analysis-10-2025-122036
In recent trading activity on June 10, 2025, the USD/JPY currency pair has shown limited volatility, suggesting a phase of consolidation that places the market sentiment into a wait-and-see mode. The pair continues to hover within a tight range, held between two critical price levels acting as resistance and support. This price behavior keeps technical traders cautious, as it reflects the absence of a distinct directional move.
Overview of Current Price Behavior
– The USD/JPY pair’s movement has been confined between a solid resistance level near 157.70 and key support around 156.55.
– After prior bullish attempts, the pair has struggled to breach the 157.70 resistance ceiling, failing to maintain upward momentum.
– On the downside, 156.55 has persistently provided a floor for prices, suggesting strong buyer interest in that region.
– The price action suggests that market participants are waiting for a decisive breakout from these bounds to determine the next major move.
– The 50-period Exponential Moving Average (EMA50) continues to lend support to the price structure, giving bulls some confidence in the interim.
Technical Indicators Update
Several technical indicators are presenting mixed signals, reflecting the uncertainty of the prevailing market mood. These indicators detail different aspects of price action, momentum, and market sentiment:
1. Moving Averages:
– The EMA50 is trending upward and currently supports the pair at approximately 156.90, offering a near-term cushion for price dips.
– The moving average setup continues to favor bullish sentiment as long as the price remains above this dynamic support.
2. Momentum Oscillators:
– The Relative Strength Index (RSI), plotted on the 14-day period, has been hovering around the neutral 50-level mark.
– This neutral RSI level suggests that neither bulls nor bears have a clear advantage for now.
– A push above the 57-level in RSI could point to bullish momentum resuming, while a drop below 43 could indicate renewed selling pressure.
3. Bollinger Bands:
– Bollinger Bands are narrowing, indicating low volatility and a likely buildup toward a breakout event.
– A widening of the bands in conjunction with a breakout from the current price range could serve as confirmation of the next trend.
Potential Scenarios: Breakout or Breakdown?
All eyes are on whether USD/JPY will successfully break above resistance or drop below support. Here’s a detailed breakdown of both scenarios:
Bullish Scenario – Break Above 157.70
– A decisive breakout and daily close above the 157.70 resistance would likely trigger strong buying interest.
– Such a move would confirm the continuation of the broader bullish trend that has been in place for several months.
– Potential upward targets in the event of a bullish breakout include:
– 158.50, which serves as the next psychological resistance level.
– 159.30, a technical level that aligns with previous Fibonacci extension targets.
– A long-term projection leads to 160.00, a round number and historically significant level.
– Volume confirmation and momentum strengthening would be essential to validate any move toward these upper targets.
Bearish Scenario – Drop Below 156.55
– On the flip side, a break below the 156.55 support level could indicate the emergence of a bearish corrective phase.
– A daily close beneath this level would attract sellers, possibly initiating a retracement toward deeper support areas.
– Downside targets in the event of a bearish breakdown include:
– 155.60, a previously tested support zone.
– 154.85, a level coinciding with recent swing lows.
– 153.90,
Explore this further here: USD/JPY trading.