USDJPY has shown a notable recovery after finding support at the 144.46 lows, paving the way for a correction from its ongoing drop. The pair has since rebounded significantly, currently testing the 38.2% Fibonacci retracement level at 147.140.
The chart shows a descending trend line connecting the highs near 151.470, with price action now attempting to regain lost ground. After breaking below a support zone around the 147.00 handle in early April, the pair found strong buying interest at the lows, resulting in the current upward correction.
Looking at key technical levels, the 38.2% Fibonacci retracement at 147.140 is providing immediate resistance, with the 50% level at 147.967 and the 61.8% level at 148.793 representing additional hurdles should the bullish momentum continue. The highlighted support zone in the mid-146 range could serve as a buffer zone if sellers regain control.
The moving average indicators show the shorter-term MA crossing below the longer-term MA during the recent decline, signaling bearish conditions. However, the gap between these indicators appears to be narrowing, suggesting a potential bullish crossover if the current recovery extends.
The stochastic oscillator has risen sharply from oversold territory and is now approaching overbought conditions, indicating strong bullish momentum that may be due for a pause or pullback. Meanwhile, the MACD indicator has formed a bullish crossover and is generating positive histogram bars, confirming the current upward momentum.
For traders, the key decision points lie at the Fibonacci resistance levels. A decisive break above the 38.2% level could target the 50% retracement next, while rejection at current levels might signal a pullback to test the support zone.
The overall technical picture suggests that while USDJPY has regained some ground, it faces significant resistance before potentially rechallenging the previous trading range above 148.00. The dollar could continue to take cues from trade-related headlines, as the tariffs uncertainty also appears to be weighing on the currency’s value.