Title: USD/JPY Challenges Key Resistance Level: In-depth Technical Analysis
Original Author: Economies.com – Published November 4, 2025
The USD/JPY currency pair continues its bullish momentum, testing a critical resistance zone that could significantly influence its near-term direction. Recent price action points to a heightened level of bullish interest in the pair, which has been steadily climbing amid supportive macroeconomic factors and technical indicators.
This extended analysis offers a comprehensive look into the USD/JPY’s current position, highlighting chart patterns, key support and resistance levels, and forecasted movement based on prevailing technical signals. The original analysis is credited to Economies.com, which first published the insights on November 4, 2025.
Overview of USD/JPY Price Movement
– The USD/JPY pair remained largely within an upward trajectory over the past several sessions.
– This uptrend has been sustained by strong USD fundamentals, including robust employment data and higher treasury yields in the U.S.
– With bulls in control, the pair is seen aggressively testing a major resistance level.
Current Resistance Target
– The 151.70 level is identified as a pivotal resistance area.
– This zone has historically served as a reversal point, suggesting a key decision-making area for traders.
– A confirmed breakout above this resistance will likely trigger larger bullish waves towards even higher targets.
Supporting Indicators
Several technical tools support the notion that the bulls are maintaining pressure at the current levels:
1. Exponential Moving Averages (EMA)
– The 50-day EMA remains well below current price levels.
– This suggests that the ongoing momentum is balanced in favor of further gains.
– The price staying consistently above the EMA reaffirms the importance of the current support structures.
2. Stochastic Oscillator
– The stochastic indicator currently hovers in the overbought zone.
– This may suggest weakening upward momentum in the very short term.
– However, overbought conditions during a strong trend often sustain, particularly when market sentiment aligns with macro drivers.
3. Trendline Support
– A clear ascending trendline from the past two months reinforces the strength of the ongoing bullish trend.
– Prices have respected this trendline repeatedly with strong rejections on any dips.
Scenario: Breakout vs. Reversal
Two potential scenarios are emerging as the pair tests the 151.70 resistance level:
Scenario 1: Bullish Breakout
– If the USD/JPY closes above the 151.70 resistance on a daily basis, it would confirm a breakout.
– Confirmation would set the stage for further movement toward the next bullish targets:
– 152.50 as minor resistance
– 153.70 representing the next key zone where historical selling pressure has previously been observed
– An extended target lies near 155.00, a psychological round number and multi-year high
Scenario 2: Bearish Rejection
– A failure to break 151.70 might result in a short-term rejection and correction.
– Downside pullback targets to watch include:
– 150.30 as initial support, corresponding to recent breakout levels
– 149.15 where the 50-day EMA approximately aligns
– Further decline could drive the pair to the 148.00 area, matching a prior consolidation base
Volume and Momentum Analysis
– Trading volume has increased near resistance levels, suggesting that market participants are closely monitoring this juncture.
– Momentum indicators such as the MACD (Moving Average Convergence Divergence) show a slight divergence, implying a temporary pause could occur.
– However, continued inflows and hawkish central bank expectations could help sustain the buying trend.
Fundamental Background Supporting the Technical Condition
The dollar’s strength against the yen is built on several solid macroeconomic pillars:
– Interest Rate Differentials:
– The U.S. Federal Reserve maintains a comparatively aggressive policy stance.
– Expectations of higher-for-longer interest rates provide the
Explore this further here: USD/JPY trading.