USD/JPY pauses near the resistance while the breakup is approaching

• The USD/JPY remains below the key resistance while the impulse shows signs of stagnation.
• The pair is pressed by mixed signs of the Fed and the BOJ.
• The price action within the range continues; A breakout or breakdown is expected soon.

The USD/JPY torque remains a focal point in the currency market, fluctuating within a key technical area while markets digest economic expectations and evolutionary monetary policy.

With the US dollar (USD) quoting 145.13, lowering 0.47%, against Japanese Yen (JPY) at the time of writing, the recent three -week rally shows signs of fatigue, with the action action of this week reflecting indecision in the middle of a mixed feeling.

Although inflation has shown signs of cooling, Federal Reserve officials (FED) have maintained a cautious tone, limiting the potential for aggressive rates in the short term. Meanwhile, the Japanese Yen is still pressed by the Ultra-Flexible Policy Position of the Bank of Japan (BOJ), although the recent verbal intervention of Japanese officials has introduced volatility in Yen’s pairs.

The feeling of risk and treasure yields also remain central to the direction of the USD/JPY.

The daily impulse stagn below the resistance while the USD/JPY consolidates about 145.00

In the daily chart, the USD/JPY extended its recovery in the middle of the week, exceeding the simple mobile average (SMA) of 20 days in 143.19 and claiming the psychological level of 144.00, which had previously acted as resistance.

This movement was reinforced by a rupture above the fibonacci recoil level of 23.6% in 144.37, measured from January maximum to April minimum, allowing the time to reach a maximum of 146.19 on Friday.

However, the bullish impulse vanished near the 50 -day SMA in 146.34, where the price found a strong resistance.

The inability to maintain levels above 146.00 led to a setback and stabilization around the 145.00 zone, positioning the torque within a critical area defined by the mobile socks in the short term.

This area between the 20 -day SMA and the 50 -day SMA represents a compression of the price action that could precede a breakout in any direction.

The Relative Force Index (RSI) has risen to 52.37, indicating a slight bullish inclination in the impulse, although it remains within the neutral territory and lacks overband conditions.

USD/JPY DAILY GRAPH

Spinning Top’s weekly candle indicates indecision for the USD/JPY

Taking a broader vision, the weekly chart reflects a maturation rally, with the USD/JPY registering its third consecutive weekly gain before finding resistance.

This change in the impulse is illustrated by a spinning top candle, a classic signal of indecision of the market and possible exhaustion of the trend.

The long upper shadow highlights the rejection near the maximum of 146.19, while the long lower shadow points to a sustained purchase interest below 144.00, a level of psychological and technical significance.

The resistance remains concentrated in the 10 -week SMA (145.96) and the 50 -day SMA, both which limited the bullish potential this week.

The support is well defined among the fibonacci setback of 23.6% in 144.37 and the 20 -day SMA in 143.19, reflecting an area where the purchase interest has emerged repeatedly. The convergence of signals through the temporal frames indicates that, although the broader trend remains constructive, the impulse has paused, and the next weekly closure will be key to defining the medium -term trajectory.

In the weekly graph, the RSI is currently in 40.97, reflecting a content impulse and a lack of conviction in the broader trend, with the indicator still below the neutral line of 50.

Weekly USD/JPY graphics

USD/JPY at a turning point while a breakout or breakdown will define the next movement

A breakout confirmed above the 50 -day SMA (146.34) would point out a resumption of the bullish impulse in the USD/JPY, opening the way to the following resistance in 147.09, the 38.2% of the fall from January to April.

Sustained purchases beyond this point could point to the psychological level of 150.00, especially if US treasury yields remain firm, economic data remain resilient, or the divergence of policies between the Fed and the BOJ persists.

On the contrary, the inability to stay above 144.37 followed by a decisive breakdown below the 20 -day SMA would suggest a fading of the bullish impulse, changing the approach to 142.00 and potentially 140.00, particularly if the feeling of risk is weakened or the US data disappoint.