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The USD/JPY pair has been trading sideways within a range of 145.42 and 148.22 for several days. This consolidation phase presents important trading opportunities as we look ahead.

Current Market Dynamics
 

As long as the support level at 145.42 holds, this sideways movement can be interpreted as a consolidation for the uptrend that began at 141.68. A breakout above the resistance at 148.22 could signal a continuation of this bullish trend, with the next target set at 150.00. If the price continues to rise, the following resistance level to watch would be 151.85.

Key Levels to Monitor
 

1. Resistance Levels:
   • 148.22: The upper boundary of the current trading range.
   • Next Targets: If the price breaks above 148.22, the next targets are 150.00 and 151.85.
2. Support Levels:
   • 145.42: The critical support level that needs to hold for the bullish outlook to remain intact.
   • Next Support: If the price falls below 145.42, it could drop to the 144.00 area, and further declines could target the previous low at 141.68.

Market Outlook
 

The current sideways movement indicates indecision in the market. If USD/JPY can maintain its position above 145.42, it may lead to a breakout and further gains. However, a breakdown below this support level could signal a shift in momentum, leading to potential declines.

Conclusion
 

The USD/JPY pair is at a pivotal point, with key resistance and support levels in play. Traders should closely monitor the 145.42 support and the 148.22 resistance for potential trading opportunities. A breakout above the resistance could lead to a bullish trend, while a drop below support may indicate further bearish movements.

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