USD/JPY is currently trading in a narrow range around 142.50. After a sharp drop the previous day, it is attempting a rebound from the lows, but faces resistance and lacks clear direction. Technically, no strong trend is confirmed based on the moving averages (MA), ADX, and DMI, and the market is seeking the next breakout point. In the short term, the focus is on whether it can break through the 142.80–143.00 resistance zone, while also watching for risks of a drop back into the 141-yen area.
Currently, USD/JPY is trading below both the 50-hour (blue line) and 200-hour (red line) moving averages, suggesting a bearish tone. The 50MA in particular is capping price movements, showing strong selling pressure. Candlesticks with long wicks and small bodies highlight market indecision. Failure to break above these averages could lead to a retest of 141.80.
The ADX (yellow line) remains near 0.15, indicating a lack of trend strength. Generally, a reading above 0.20 suggests a trending market, but current levels point to a trendless state. DMI shows +DI (green line) slightly above −DI (red line), signaling marginal buying pressure with little conviction.
Trading volume is declining, suggesting participants are in a wait-and-see mode. The lack of volume accompanying the rebound indicates limited trust in the upside. Even a break above 142.80 without strong volume could be a false breakout, so caution is advised.
※Image source: cTrader platform
To determine the next move for USD/JPY, monitor the following technical levels:
Bullish Scenario (Breakout Strategy)
Entry: After confirming break above 142.80
Target: 143.30 – 143.50
Stop Loss: Below 142.40
Bearish Scenario (Downtrend Continuation)
Entry: After confirmed break below 141.80
Target: 141.20 – 140.80
Stop Loss: Above 142.20
USD/JPY is currently in a consolidation phase, waiting for a trend to develop. MA, ADX, DMI, and volume all indicate a cautious market. Breakout trades are likely more effective than trend-following strategies at this stage.
This article is for informational purposes only and does not constitute investment advice. All trading decisions are your own responsibility.
For more updates and other currency analyses, please visit the FIXIO Blog.
This article is intended for informational purposes only and does not constitute financial or investment advice. The analyses and strategies mentioned are based on past data and current market conditions, and may be subject to change in the future. When making investment decisions, always conduct your own research and consult a professional if necessary.
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