USD/JPY key levels to watch after powerful rallyThe USD/JPY has rallied decisively today, aided by the shift in Japanese bond sentiment.
The pair has broken several short-term levels and moving averages. At the time of writing, it was trading bang in the middle of the 144.00 -144.80 resistance area, formerly support. We also have the 21-day exponential moving average residing here.
As things stand, the next key upside target for the USD/JPY is now positioned near the 145 mark. Should price approach or breach it, we might begin to see growing confidence among longer-term bulls.
On the downside, key support is seen around the 142.50 level. Bearish below towards 140.00 next.
By Fawad Razaqzada, market analyst with FOREX.com
USDJPY trade ideas
USDJPY: 300+ Pips From Previous Idea, What Hold Next? Hey Everyone
USDJPY is on a roll! It’s rebounded a whopping 300+ pips and is now on the positive side. We reckon it’s going to keep climbing in the coming days as DXY is starting to regain its strength.
And here’s the cherry on top: there’s some exciting news coming up, including the NFP tomorrow. This could really boost the USDJPY to a new record high.
But remember, when trading, it’s crucial to manage your risk carefully.
Now, let’s talk about the potential for a significant market movement. We’ve spotted a chance for a substantial bullish swing that could reach around 2050 pips. We’ve also identified three potential targets, so you can choose the one that best fits your analysis.
The main driver behind this move is the reversal of the Japanese Yen (JPY) from a bullish trend to a bearish one. So, let’s be cautious and use precise risk management techniques during this period.
Good luck and happy trading! 😊
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JPY/USD – Clean Rejection from Mini Resistance | Bearish Move🔻 1. Major & Mini Resistance Zones
Mini Resistance Zone: This is a key supply area that aligns with previous highs and recent structure points. As the price approaches this level, it tends to react due to unfilled sell orders and trapped buyers.
The chart shows a rejection from this mini resistance zone — visible through strong bearish candles. This suggests institutional selling pressure has entered the market.
Major Resistance is still untouched above, which becomes a clear invalidation level for any short bias. If price breaks and sustains above it, the bearish idea would be invalidated.
🔄 2. MMC (Mirror Market Concepts) at Work
The MMC idea is clearly illustrated. The price movement after the last major drop is mirrored on the right side:
Strong rally > Formation of lower highs > Resistance retest > Sharp decline
These mirrored behaviors often hint at psychological repetition in the market, driven by trader memory and order placement.
The bearish movement after retesting the mini resistance looks nearly identical to the previous leg on the left — reinforcing the idea that we may see a similar downside structure repeat.
🌀 3. Central Zone Area – Liquidity Trap and Reaction Point
The Central Zone Area is labeled where a previous sharp bounce occurred. This zone is critical for several reasons:
It acted as support multiple times.
It’s also where a liquidity grab occurred — shown with a long wick — before a reversal rally.
In current price action, this zone may again act as a magnet for price, as institutions seek liquidity to fuel further moves. Once price reaches it, expect a temporary bounce or reaction.
📐 4. 50% Fibonacci Retracement Confluence
The projected target sits right on the 50% retracement level of the previous bullish leg.
Institutions frequently target the 50%–61.8% Fibonacci zones to rebalance orders and create continuation moves.
This target zone is marked in purple and is aligned with historical support, adding confluence.
📉 5. Sharp Bearish Reversal from Structure
You can observe a very clear shift in momentum:
The uptrend was broken with a strong bearish engulfing candle.
That move wiped out several minor bullish structures — a sign of structure collapse.
This breakdown, combined with the resistance rejection and MMC mirroring, strongly supports a bearish continuation bias.
📊 6. Previous Targets and Structure Memory
The previous targets and historical swing points are not just annotations — they represent real zones of order flow memory.
When price revisits these levels, you often see reactions (reversals, consolidations, or continuation).
🎯 Trade Plan (Based on Chart):
Bias: Bearish
Entry Zone: After rejection confirmation at mini resistance
Target Zone: 0.00675 area (50% retracement)
Invalidation: Close above 0.00715 (Major Resistance)
✅ Conclusion:
This JPY/USD 4H chart beautifully showcases the power of technical structure, Mirror Market Concepts, and liquidity-focused trading. With a clean rejection from mini resistance, a history of mirrored bearish setups, and a confluence target at the 50% zone, this chart suggests a high-probability short opportunity for disciplined traders.
USDJPY Is Bearish! Short!
Take a look at our analysis for USDJPY.
Time Frame: 30m
Current Trend: Bearish
Sentiment: Overbought (based on 7-period RSI)
Forecast: Bearish
The market is testing a major horizontal structure 142.838.
Taking into consideration the structure & trend analysis, I believe that the market will reach 142.464 level soon.
P.S
Please, note that an oversold/overbought condition can last for a long time, and therefore being oversold/overbought doesn't mean a price rally will come soon, or at all.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Like and subscribe and comment my ideas if you enjoy them!
USDJPY RESISTED AROUND 140.20From a technical standpoint, USD/JPY found support around the 142.11 level, which triggered a break above the descending trendline on the 4-hour chart. This breakout suggests a shift in momentum, favoring the bulls in the short term. However, the upward movement is currently facing resistance near the minor supply zone at 144.20, where price has temporarily stalled as the market awaits further direction.
If bullish momentum continues, a brief pullback to retest the broken trendline is expected, a move that would also align with a nearby demand zone. This potential retracement could offer a fresh buying opportunity, with targets aimed first at clearing the 144.20 resistance. A successful breakout above this level may pave the way toward the psychological resistance at 145.00.
On the flip side, if bearish pressure resumes and the pair breaks below the 142.00 support level, the next downside target would be the 141.52 area, further decline will target 140.65 level. Breakout of this levels are not ruled out.
On the Radar for the Remainder of the Week:
• Wednesday: Richmond Manufacturing Index (6:00 PM GMT+4) will offer a snapshot of U.S. factory activity. Later, the FOMC Meeting Minutes (10:00 PM GMT+4) could reveal key insights into the Fed’s stance on inflation and interest rates.
• Thursday: A busy day kicks off with the Preliminary U.S. GDP, a crucial measure of economic performance, followed by Weekly Jobless Claims and Pending Home Sales, reflecting labor and housing market trends.
• Friday: The focus shifts to Japan with the release of Tokyo Core CPI, which may guide yen sentiment. In the U.S., attention turns to the Core PCE Price Index, the Fed’s preferred inflation gauge, and Consumer Sentiment, indicating household confidence. These datapoints has the tendency to drive prices in the coming days.
USDJPY Breakout Watch | Bullish Momentum Toward Key ResistanceUSD/JPY is showing strong bullish momentum on the 15-minute chart, breaking out of a consolidation range with increased volume.
Technical Highlights:
Price has surged with strong bullish candles, showing clean impulsive movement.
The key level at 144.39 is being tested as potential breakout resistance.
If price sustains above this zone, it may target the next resistance area near 145.35.
Clean price structure with volume supporting upward movement.
Risk is managed with a stop below the breakout level, targeting a favorable risk-to-reward ratio.
This setup reflects trend continuation with bullish momentum and clear technical structure.
📈 Watching closely for confirmation and follow-through above key breakout zone.
Downtrend Awaiting ConfirmationUSDJPY has just made a technical rebound from the support zone at 142.22 up to the resistance area around 144.60 — a confluence with both the EMA 34 and EMA 89. However, based on the chart, this zone has previously acted as a reversal point, and price is now retesting that same level of rejection.
The current price action suggests a high likelihood of a small double-top pattern forming around 144.60. If selling pressure re-emerges here, the market could reverse and head back down toward 142.22, aligning with the developing downtrend.
Moody’s recent warning on U.S. credit rating has placed pressure on the USD, while the JPY continues to hold its safe-haven appeal amid market uncertainty.
Yen Reaches Highest Level in a MonthThe Japanese yen strengthened toward 142 per dollar on Tuesday, its highest in four weeks, driven by safe-haven inflows and weak dollar sentiment tied to Trump’s fiscal plan. Worries over a widening U.S. deficit weighed on the greenback, while speculation of a 25% iPhone tariff added to trade conflicts. Domestically, expectations for more BoJ tightening rose after core inflation surprised at 3.5%, a two-year high.
Resistance stands at 148.60, with further levels at 149.80 and 151.20. Support is found at 139.70, then 137.00 and 135.00.
Analysing the Volatility Spike on the USD/JPY ChartAnalysing the Volatility Spike on the USD/JPY Chart
The USD/JPY chart offers plenty of noteworthy insights for analysis:
→ A one-month low was recorded today (marked by the arrow);
→ This was followed by a sharp upward reversal, with a series of large bullish candlesticks forming on the intraday chart.
Why Is USD/JPY Moving Sharply Today?
The primary driver appears to be recent statements from Bank of Japan Governor Kazuo Ueda.
According to Trading Economics, this morning Ueda:
→ warned of rising core inflation risks linked to increasing food prices;
→ indicated that the Bank of Japan is prepared to adjust its monetary policy in order to achieve a stable inflation target.
Latest data show that Japan’s core inflation unexpectedly rose to 3.5% — the highest level in two years — reinforcing the case for further rate hikes. However, what's particularly striking is that despite Ueda’s hawkish tone, the yen is weakening.
Technical Analysis of the USD/JPY Chart
Yen fluctuations formed a downward trajectory (marked in orange) in the second half of May, partly driven by US dollar weakness. Following a period of relative calm, the market has shifted into high gear — the ATR indicator is climbing sharply from multi-month lows, breaking through resistance at the 143.0 level.
This aggressive price action on the USD/JPY chart today suggests we may be witnessing an attempted bullish breakout from the channel. In light of this, it is possible that the surge in volatility reflects a fundamental shift in market sentiment — one that could potentially lead to the development of an upward trend.
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MarketBreakdown | USDJPY, US100, BITCOIN, GBPJPY
Here are the updates & outlook for multiple instruments in my watch list.
1️⃣ #USDJPY 4H time frame 🇺🇸🇯🇵
I see a strong bullish reaction to a key daily/intraday horizontal support.
A formation of a high momentum bullish candle and a violation of a resistance line
of a bullish flag indicate a highly probable rise to higher levels.
2️⃣ #US100 #NASDAQ Index 4H time frame
I spotted one more bullish flag on US100.
Its resistance was violated yesterday and we already see
a strong buying interest.
I think that the market will rise more, at least to a current local high.
3️⃣ #BITCOIN #BTCUSD daily time frame
The price nicely respected a confluence zone based on
a rising trend line and a recently broken horizontal structure.
Probabilities will be high that the market will continue rising from that.
4️⃣ #GBPJPY daily time frame 🇬🇧🇯🇵
The price nicely respected a solid rising trend line.
I see a breakout attempt of a minor daily horizontal resistance.
IF a daily candle closes above that, it will provide a strong bullish confirmation.
Do you agree with my market breakdown?
❤️Please, support my work with like, thank you!❤️
I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
USDJPY Analysis – Yield Support Signals Potential UpsideUSDJPY is currently sitting at a key support zone around 142.80–143.00, showing signs of a potential bullish reversal. This support area has previously acted as a strong launchpad for price rallies.
🟢 Technical Setup:
Price action has formed a clean higher low structure, bouncing off horizontal support.
The US10Y Treasury Yield (pink line) has rebounded sharply and is diverging to the upside — a leading indicator for USDJPY strength.
The Fib retracement from the last swing move aligns well with the 0% zone, suggesting the dip might be complete.
A bullish reaction from here targets the 148.50 zone, with intermediate resistance around 145.00–146.00.
🟠 Risk Levels:
Invalidated below 141.40 (structure break).
Stops could be placed below 142.00, targeting a 2:1 or better risk-reward ratio.
🔍 Macro-Fundamental Insight:
U.S. Yields are firming despite mixed Fed signals — this gives strength to USD, especially against low-yielders like the JPY.
BOJ remains dovish with no urgency to normalize rates, keeping the yen weak.
With risk appetite improving and bond yields lifting, carry trade dynamics favor USDJPY upside.
✅ Conclusion:
As long as US10Y yields remain firm and USD holds above 142.00, USDJPY has a strong probability of rallying toward 148.50. Look for confirmation with higher highs on the 4H chart and continued divergence between yield and price.
USDJPY | FVG + OB + Weak Low Target = Textbook SMC Setup📊 USDJPY | 1H Bearish Play – Smart Money In Control
We’re seeing a classic setup where price retraces into a bearish zone of confluence and prepares for a selloff toward internal liquidity. Check the breakdown:
🔻 1. Structure Shift Confirmed
Price broke structure on the downside after forming a lower high
Current move is a retracement into discount OB zone
Clear rejection is forming, signaling short momentum incoming
🟪 2. Zone Confluence
📌 Order Block (OB): Sitting just under the 61.8% Fib
📌 Fair Value Gap (FVG): Mitigated perfectly
📌 Fib Retracement: Price reacts between 61.8% and 70.5% — classic Smart Money play
📌 Previous Demand Turned Supply: This level is now acting as a rejection zone
This is stacked confluence — just how Smart Money likes to move.
💣 3. Entry Strategy
Entry Zone: 142.55 (midpoint of the OB reaction area)
Stop Loss: Above 143.443 (above OB + liquidity wick)
Take Profit: 139.888 (weak low, previous liquidity resting point)
⚖️ 4. Risk-to-Reward Ratio (RRR)
🎯 TP = 139.888
📍 Entry = 142.550
🔐 SL = 143.443
✅ RRR ≈ 1:3.5
A great example of high-probability short setup using pure Smart Money logic.
📉 5. Why This Works
Retail traders will try to long at this zone hoping for a breakout
Smart Money uses this zone to engineer liquidity
They tap into the FVG/OB, then target internal liquidity and weak lows
Clean, controlled sell-off expected down to 139.888
🧠 SMC Insights
This chart is all about liquidity engineering:
Push up into OB
Reject at premium pricing
Drive down to weak low to collect stops
Possibly reverse or continue trend from there
💬 Comment “FVG TAP + OB = 🔥” if you spotted this setup early
💾 Save it before the drop happens
📤 Share with a fellow SMC trader who needs this breakdown
Fundamental Market Analysis for May 27, 2025 USDJPYThe Japanese yen (JPY) is attracting fresh buyers in Tuesday's Asian session following the release of strong inflation data. Additionally, comments from Bank of Japan Governor Kazuo Ueda left the door open for further policy tightening by the central bank. This is in sharp contrast to expectations that the Federal Reserve (Fed) will continue to cut interest rates this year, and is proving to be a key factor that is providing a nice lift for the yen.
In addition, persistent geopolitical risks related to the protracted war between Russia and Ukraine and conflicts in the Middle East are contributing to the yen's safe haven status. The US dollar (USD), on the other hand, remains near its lowest level since April 22 amid concerns over the deteriorating US fiscal situation. This contributes to the USD/JPY pair's fall to 142.000, or more than a one-month low, and supports the prospects for further losses.
Trading recommendation: SELL 143.300, SL 143.900, TP 142.000