The following article is a rewritten and expanded version of the original analysis by Economies.com on the USD/JPY currency pair titled “The USDJPY is Looking for Rising Low – Analysis – 10-06-2025.” Original content credit goes to Economies.com.
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# USD/JPY Eyes Formation of Higher Low: Technical Analysis Breakdown
The USD/JPY currency pair remains one of the most actively traded pairs in the Forex market, serving as a critical barometer for global risk sentiment and central bank policy divergence. Recently, the pair has demonstrated bearish momentum, undergoing a corrective phase following an extended bullish trend. However, as of June 10, 2025, technical indicators suggest a potential for the formation of a higher low, signaling the groundwork for another upside push.
This in-depth analysis will evaluate the current market structure, assess key technical levels, and outline the factors that may influence the next major move for the USD/JPY. The analysis is designed to assist Forex traders and market participants in making informed decisions based on current price action, support and resistance zones, and broader sentiment cues.
## Current Price Movement and Trend Structure
– The USD/JPY pair recorded a moderate decline in recent sessions following its failure to extend beyond the resistance zone near 157.80.
– Price has traced out a slight downward correction, stalling near the support band at approximately 156.60.
– The broader trend remains bullish. The current market activity hints at a retracement within the prevailing uptrend, indicating a possible higher low formation as part of the ongoing upside structure.
This potential higher low is crucial because it would reaffirm the broader bullish momentum if the price rebounds from an elevated support line, rather than returning to lower pivot points or reversing direction entirely.
## Key Technical Indicators
Several technical tools and indicators support the interpretation of a temporary correction within a bullish framework.
– **50-period Exponential Moving Average (EMA):**
– The pair continues to trade above the 50-period EMA on the 4-hour chart, a typical signal of sustained upward momentum.
– The EMA’s direction is sloped positively, providing dynamic support for the price at the mid-156.00 level.
– **Relative Strength Index (RSI):**
– The RSI has eased slightly but remains above the 50 neutral line, hovering around the 57 mark.
– This indicates that despite the recent pullback, bullish momentum has not been fully lost.
– **MACD (Moving Average Convergence Divergence):**
– While showing signs of weakening bullish pressure in recent candles, the MACD line stays above the signal line.
– This could mark a temporary bearish drift before a return to the upside movement.
This settings convergence among technical indicators aligns with the viewpoint that the market is currently in a cooling-off period following a sustained rally, positioning itself for the next potential leg higher.
## Support and Resistance Levels
Price action is bounded by identifiable support and resistance levels that traders should consistently monitor. These key levels will guide market reactions and probable reversal patterns in the near term.
– **Immediate Resistance:**
– 157.30: This horizontal level marks the nearest resistance and served as a previous high, rejected on several occasions.
– 157.80 – 158.00: A confluence of past highs and psychological round number resistance. A confirmed breakout above this zone would serve as a strong bullish signal and may initiate rapid upside continuation.
– **Immediate Support:**
– 156.60: The first key support area. Price is approaching this level as of the latest market session.
– 156.00: A round number and potential psychological floor. Additionally, this level roughly coincides with an older breakout zone, offering secondary support.
– 155.50: A minor fallback level that could serve as a critical marker should current support zones fail to hold.
These zones provide the action points for breakout traders and mean-reversion participants considering countertrends.
Explore this further here: USD/JPY trading.