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USDJPY continues to trade higher and is once again approaching the 159–160 resistance area, a key level that previously capped the rally in January 2025. Current price action suggests there is a solid possibility of a break above this zone, especially if the recent corrective phase has already completed.
4-Hour Chart: Flat Correction Around 152
On the 4-hour chart, USDJPY appears to have completed a flat correction near the 152 level, which may represent wave four within the ongoing bullish structure. After stabilizing at that support zone, the pair resumed its upward movement, indicating that the next impulsive leg may now be underway.
USDJPY 4H Chart
If this wave count remains valid, the market could now be progressing higher in the next bullish phase.
Daily Chart: Potential Move in Wave C of B
Looking at the daily chart, the current rally may represent wave C of wave B, suggesting that additional upside could still unfold before a larger corrective phase develops. This scenario supports the possibility of USDJPY pushing through the 159–160 resistance zone in the near term.
USDJPY Daily Chart
Key Resistance Ahead
Despite the bullish momentum, traders should closely monitor the 160–162 resistance area, which represents a major technical barrier dating back to July 2024. This zone could slow or temporarily halt the rally.
If the broader structure is forming an A–B–C recovery within a higher-degree wave four correction, the rally may struggle to extend significantly beyond this region.
Another factor to watch is potential policy action from the Bank of Japan. Any intervention or policy adjustments aimed at supporting the Japanese yen could limit further upside in USDJPY.
Outlook
USDJPY remains in a strong upward trend, but the market is approaching an important resistance zone. While a break above 160 remains possible, the 160–162 area could act as a major hurdle, especially if fundamental pressure from Japanese authorities emerges.
Traders should remain attentive to price behavior around these levels, as they could determine the next significant move in the pair.
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