USD/JPY – Strong Bullish Momentum Resumes Following Minor Pullback

The USD/JPY gained 0.7% on Wednesday during Asian and European trading, rebounding as concerns over an immediate escalation in the Ukraine conflict began to fade. Dollar strength, driven by continued “Trump trade” momentum, also supported the pair.

The rally retraced nearly 76.4% of the recent pullback from the multi-month high of 156.74 to the low of 153.28, signaling that the correction from the peak may have concluded.

This bullish view is reinforced by Tuesday’s strong downside rejection, which left a long-tailed daily Doji candle and triggered a bear trap below the daily Tenkan-sen (154.44). The Tenkan-sen has held as a reliable support level.

The daily Tenkan-sen and Kijun-sen remain in a bullish configuration, supported by strong positive momentum.
A break above the 156.67/74 resistance zone (76.4% Fibonacci retracement of the 161.95–139.57 drop and the November 15 high) would confirm further upside, targeting the psychological 160 level.

The near-term outlook remains firmly bullish as long as the price stays above the daily Tenkan-sen, which is guarding key support levels at Tuesday’s low of 153.28 and the daily Kijun-sen at 152.80.

A sustained hold above these supports would keep the bullish momentum intact, paving the way for additional gains.

Res: 156.00; 156.74; 157.86; 158.86
Sup: 155.42; 154.44; 154.00; 153.28