USDJPY – Bulls reclaim momentum following a pullback, but a break above recent highs is necessary to confirm the upward trend continuation

USDJPY regained momentum, bouncing from 152.14, which marked the low of a two-day pullback from multi-week highs. This recovery offsets the bearish signal from the recent bull-trap on the weekly chart, where prices failed to close above the 153.40 level (the 61.8% Fibo retracement of the 161.95/139.57 drop).

The renewed strength suggests the dollar may continue to gain as markets anticipate a more hawkish Fed in line with expectations that Trump’s administration will prioritize economic growth.

Technical indicators on the daily chart highlight strong bullish momentum, further supported by the recent formation of a golden cross between the 20DMA and 200DMA.

An initial bullish signal would be a close above the 153.40 Fibo level, with a breakout above the double top at 154.70 (highs from Nov 6/7) needed to confirm a bullish continuation toward the next target at 156.67 (76.4% Fibo level).

However, caution is warranted around potential resistance at the 154.70 pivot, which could lead to extended consolidation. Bullish bias remains while prices hold above the 152.14 support. A firm break below the 151.70/30 area (200DMA and recent range floor) would shift focus to a stronger bearish outlook.

Res: 153.88; 154.70; 155.22; 156.67
Sup: 153.40; 153.00; 152.14; 151.69