**USD/JPY Mid-Day Technical Outlook**
*Adapted and expanded from original analysis by ActionForex.com*
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The USD/JPY pair is showing renewed bullish momentum as it approaches key resistance levels, suggesting a continuation of the upward movement within the prevailing long-term bullish trend. The analysis below expands on the original mid-day outlook provided by ActionForex, incorporating technical indicators and broader market context to provide a comprehensive overview of potential movements in the USD/JPY pair.
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### Current Price Overview and Market Behavior
– As of the latest update, USD/JPY is trading just beneath the 157.70 resistance, which is a near-term ceiling established by the May 1 intraday high.
– Today’s price action reflects increasing demand for the US dollar as it maintains strength against the Japanese yen, supported by divergence in monetary policy between the Federal Reserve and the Bank of Japan.
– Technical patterns suggest that the pair remains in an upward corrective phase following its spike in early May, when it reached multi-decade highs before experiencing short-term consolidation.
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### Technical Analysis Summary
#### Intraday Price Action
– USD/JPY continues its rebound from recent lows around the 154.53 level.
– Initial resistance is encountered at 157.70, a point at which previous selling pressure emerged.
– A decisive break above 157.70 would likely extend the rally toward the next target at 160.20, an area aligned with previous highs and psychological resistance.
#### Momentum Indicators
– The Relative Strength Index (RSI) currently trades in neutral territory, near the 60 level on the four-hour chart, signifying moderate upward momentum without entering overbought condition yet.
– MACD (Moving Average Convergence Divergence) histogram bars are increasing above the zero line on the hourly chart, further validating bullish pressure.
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### Support and Resistance Levels
A closer analysis reveals crucial technical zones:
– **Immediate Resistance**: 157.70 (May 1 high) — this is the key upside breakout level.
– **Secondary Resistance**: 160.20 (long-term critical resistance from April swing high) — a breach increases the likelihood of retesting 161.00.
– **Immediate Support**: 155.50 (20-day moving average) — marks a minor support zone.
– **Key Support (Short-Term)**: 154.53 — low from recent retracement.
– **Major Support (Medium-Term)**: 151.86 — forms a critical structural level from March and early April, loss of which would signal a bigger correction ahead.
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### Short-Term Outlook
The bullish bias remains intact as long as price action is supported above the 154.53 near-term bottom. This level functions as the line of defense for bulls. A hold above it keeps the structure constructive.
– A break above 157.70 will further solidify the view that the USD/JPY is back in the driver’s seat with potential to extend higher.
– Should bearish pressure emerge, key downside markers remain untouched, indicating room for a controlled pullback within the uptrend before any full trend reversal is confirmed.
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### Medium-Term Technical Setup
From a medium-term perspective, the market structure remains highly supportive of renewed gains in USD/JPY. The pair has been respecting a broad ascending trend channel since late 2023, underpinned by major fundamentals as well.
– The medium-term rally resumed after correctional price action in early April found support near 151.86 and rebounded back above 154.00.
– As long as this ascending structure remains respected, traders can expect dips to be bought.
Should momentum persist on higher timeframes (daily and weekly), the next upside target zone is the multi-decade high around 160.20 set earlier in April before Japanese authorities intervened in the FX markets. If those levels are breached, the market may look toward 162.00 before any serious long-term correction.
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### Ichimoku and
Explore this further here: USD/JPY trading.