As of May 28, 2025, USD/JPY has rebounded sharply on the 1-hour chart, rising to around 144.50 and approaching a recent resistance level. This represents a 250-pip rally from the May 27 low of 141.95, indicating a short-term shift in market sentiment.
This rebound aligns with several technical factors, making it highly relevant to explore the outlook from a technical analysis perspective.
On the chart, the price has moved above both the 50-period SMA (blue) and the 200-period SMA (red). Notably, breaking above the 200SMA, which previously acted as resistance, suggests that buying pressure is dominant.
Moreover, the 50SMA is gradually tilting upward, and a golden cross with the 200SMA is in sight — often seen as a sign of a mid-term trend reversal.
Looking at the MACD (Moving Average Convergence Divergence), the MACD line (blue) has crossed above the signal line (red), indicating a strong buy signal. The histogram is also expanding, confirming growing buying momentum.
This MACD behavior suggests that the current upswing is not just a rebound, but is backed by solid momentum.
The ADX (Average Directional Index) is trending above 30, indicating a clear trend presence. The rising DI+ (green) significantly diverges from the DI−, reinforcing the bullish market structure.
Note that ADX measures trend strength rather than direction — the higher the value, the stronger the trend signal.
During this rally, strong bullish candlesticks are accompanied by a noticeable increase in volume. This supports the idea that the breakout is not mere noise but is backed by real demand and speculative buying.
| Level | Price | Reason |
|---|---|---|
| Short-Term Resistance | 145.00 | Psychological level, multiple reversal points |
| Next Target | 145.50 | Previous swing high, daily chart threshold |
| Short-Term Support | 143.80 | Recent low and overlap with SMA50 |
| Mid-Term Support | 142.80 | Support from 200SMA, matches prior low |
USD/JPY is currently showing multiple bullish signals and is trading firmly above 144.50. Indicators such as momentum, MACD, ADX, and moving averages all suggest a bullish trend, presenting a possible opportunity for traders.
However, 145.00 is a strong resistance level, so caution is needed. If a pullback occurs, the 143.80–142.80 zone could become a key re-entry area.
It's crucial to maintain strict risk management and align trading strategies with indicator signals and chart structure.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. All investment decisions should be made at your own risk.
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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