USDJPY poised for a bullish trend reversal
USDJPY kicked off the week on a strong note, rising at a faster pace to close above the 150.00 mark for the first time since August. The pickup in the price confirms a bullish breakout above the August high of 149.40 and the 200-day exponential moving average (EMA). Now, all eyes are on the important trendline, which has shifted from support to resistance, sitting at 151.80—this level previously led to a dip to a 14-month low.
That said, it's worth noting that technical indicators are raising some red flags. The Relative Strength Index (RSI) and the stochastic oscillator are flatlining near their overbought levels. Note that the 50% Fibonacci retracement of the July-September downtrend is currently keeping the bulls in control around the 150.75 level.
In trend signals, the recent crossover between the 20-day and 50-day EMAs is instilling a sense of optimism, suggesting any pullbacks might be short-lived.
If buyers step in and push above the 151.80 resistance, the next area of resistance might develop between 153.40 and 154.20, which aligns with the 61.8% Fibonacci level. A sustained move higher could peak near the 157.00 level.
On the flip side, a pullback might initially retest the 200-day EMA at 149.40. If this base breaks this time, the 20-day and 50-day EMAs may come to the rescue near the 38.2% Fibonacci level at 148.11. Any further declines could lead the price toward the 144.85-145.65 range.
In summary, while USDJPY bulls have shown impressive strength lately, there are signs of exhaustion in the short term. A slight correction in the bullish trend seems likely before we see new higher highs.
US Payrolls in Focus as Wall Street Rout and Falling Yields Cap the Dollar | 6th November, 2026
The dollar saves the day
Tech Stocks Lead US Selloff Ahead of Payrolls
Technical Analysis – USDJPY stays rangebound, pinned at support near 158.00
Democratic Sweep Weakens the US Dollar and Lifts Precious Metals | 5th November, 2026
US Midterm Elections: Analyzing Fiscal Deficits, Treasury Yields, and the Greenback
US Midterm Results Weigh on the Dollar as Central Bank Policy Divergence Builds | 4th November, 2026
