**USD/JPY Mid-Day Technical Outlook – Expanded Analysis**
Original Source: ActionForex.com
Author: ActionForex Technical Team
Original Article: https://www.actionforex.com/technical-outlook/usdjpy-outlook/611351-usd-jpy-mid-day-outlook-2155/
The intraday technical picture for the USD/JPY pair remains mildly bullish, continuing the positive momentum seen in earlier sessions. The rebound from recent lows aligns with the prevailing upward momentum that has defined the pair’s general trend over recent weeks. Market participants and technical traders are closely watching whether the pair can maintain or extend its current recovery path, with particular attention on certain critical levels.
## Intraday Trends and Short-Term Analysis
Currently, USD/JPY is maintaining its rebound momentum from the recent low at 154.53. Price action suggests that the pair continues to find support around this level, which serves as a potential short-term bottom. Analysis of candlestick patterns and hourly chart structures indicates that buying interest is still present. However, bullish conviction remains limited until particular resistance levels are broken.
– The current intraday bias remains on the upside.
– Immediate resistance is observed at 157.67, the previous short-term high.
– A firm break of 157.67 would signal a resumption of the larger upward trend from the 140.25 low established earlier in the year.
– If successful, the next upside target would be the 160.20 long-term high.
– Failure to break above 157.67 could render the current rise as merely a corrective reaction.
The possibility of the current price action being a consolidation within a broader downward correction cannot be entirely dismissed. If so, additional resistance is expected at higher levels, especially if there is waning bullish volume or failure to clear key fib retracement levels.
## Medium-Term Support Zones
Although the current movement is pointing higher, caution is warranted until decisive breaks above key resistance zones occur.
– The 154.53 level remains a crucial support. If this floor holds, it reinforces the medium-term bullish structure.
– A firm break below this level would shift short-term focus to 151.86, a previous support threshold and a potential target in the case of a downward turn.
– Sustained weakness below 151.86 could suggest a trend reversal or the establishment of a deeper corrective pattern in the medium term.
## Daily Chart Overview
From the perspective of the daily chart, the broader trend for USD/JPY remains upward. The pair has been in a consistent uptrend since bottoming out at 140.25 in December of last year. Both the 55-day exponential moving average (EMA) and the 200-day simple moving average (SMA) are sloping upwards, indicating that longer-term momentum still supports a bullish bias. Moreover, price action has remained generally above these moving averages.
Key elements from the daily outlook:
– 55-day EMA is currently providing dynamic support near 155.50.
– RSI on the daily chart is holding above 50, indicating ongoing bullish momentum, though not yet at overbought levels.
– MACD remains in positive territory but has been flattening slightly, indicative of consolidation rather than solid breakout movement.
To confirm that the pair is on a new leg higher, a bullish breakout above the 160.20 resistance would be required. Until that happens, consolidation or even deeper pullbacks remain viable possibilities.
## Weekly Chart Perspective
Zooming out further, the weekly chart provides a longer-term view of USD/JPY’s performance and structural formation.
– Price has consistently respected the channel uptrend in place since 2023.
– The longer-term trendline, which began forming from the 127.20 base, continues to hold as dynamic support and has not been violated on strong volatility occasions.
– Weekly RSI is elevated but not yet overbought, implying that the pair has room to extend higher before triggering fatigue.
– The 50% Fibonacci retracement level
Explore this further here: USD/JPY trading.
154.53 crucial support?