Title: USD/JPY Maintains Bullish Momentum: Technical Analysis – September 3, 2025
Based on original analysis by Economies.com
The USD/JPY currency pair has continued its upward trajectory, exhibiting strong bullish sentiment. Building on recent momentum, the pair has broken new ground, reinforcing existing trends and prompting market participants to reevaluate their forecasts. This analysis offers a comprehensive look at the current technical structure of the pair, its key drivers, and potential future scenarios.
Overview of Recent Performance
– The USD/JPY pair has resumed its notable bullish trend, pushing past resistance levels with renewed strength.
– Price action confirms the dominance of buyers in the market, as the pair makes consistent higher highs and higher lows.
– This upward momentum has been supported by several converging factors, both technical and fundamental in nature.
Key Technical Indicators Supporting Bullish Outlook
1. Moving Average Support:
– The 50-day Exponential Moving Average (EMA) is sloping upward, aligned beneath current price levels, serving as dynamic support.
– The 100-day EMA further supports the bullish trajectory, confirming long-term buying pressure.
2. Trendline and Channel Analysis:
– A clear ascending trendline has formed since the pair bottomed out earlier in the year.
– USD/JPY is currently trading within an established ascending channel, respecting its upper and lower boundaries.
3. MACD Indicator:
– The Moving Average Convergence Divergence (MACD) line remains above the signal line, a positive sign of continued bullish momentum.
– The histogram also shows increasing gaps between the lines, further indicating strength in the trend.
4. Relative Strength Index (RSI):
– The RSI currently stands within the 60–70 zone, reflecting bullish strength without entering extreme overbought territory.
– This reading suggests there is still room for the pair to move higher before reaching exhaustion levels.
Price Action and Key Levels
– USD/JPY is now comfortably trading above the 146.50 zone, which previously acted as a resistance level.
– The pair has managed to maintain bids above important technical markers including minor consolidation ranges between 145.20 and 146.20.
– This steady climb demonstrates that buyers continue to enter the market at every dip, reinforcing the strength of the uptrend.
Important Price Thresholds
Support Levels:
– 145.90: A short-term support that previously held firm after minor pullbacks.
– 144.50: The lower boundary of the ascending channel, acting as a medium-term support.
– 143.80: A more significant support level connected to historical reversals.
Resistance Levels:
– 147.50: Near-term resistance just above the current price, likely to encounter early selling pressure.
– 149.00: A psychologically important level, which also represents a past area of price congestion.
– 150.00: A major psychological and technical resistance; breaking this level could accelerate the bullish run significantly.
Fundamental Drivers Behind USD/JPY’s Strength
1. Divergence in Monetary Policy:
– The U.S. Federal Reserve remains on a hawkish stance, citing persistent inflationary concerns. Interest rate expectations remain elevated as a result.
– In contrast, the Bank of Japan continues with an ultra-loose monetary policy, maintaining negative interest rates and yield curve control measures.
– This divergence significantly favors the U.S. dollar, contributing to continued appreciation against the yen.
2. Carry Trade Dynamics:
– With Japanese interest rates near zero, the yen remains a favored funding currency in carry trade strategies.
– Traders borrow in yen and invest in higher-yielding assets, including the U.S. dollar. This dynamic adds consistent upward pressure to the USD/JPY pair.
3. Safe Haven Demand Fluctuations:
– As global economic risks moderate and equity markets stabilize, demand for the yen as a haven currency diminishes.
– The dollar, offering both yield and relative
Explore this further here: USD/JPY trading.