price action on the four-hour chart continues to point to a bullish short-term outlook, despite the pair entering a phase of consolidation below the recent high around 162.60–162.70. The pair remains firmly above the 161.85–161.90 zone, a key technical level that has transitioned from resistance into support, highlighting the continued dominance of buyers. As long as sellers fail to force a break below this area, the likelihood of the broader uptrend resuming remains intact, particularly with the pair holding on to most of its recent gains.
From a technical standpoint, the pair faces strong resistance within the 162.60–162.70 region, which marks a significant swing high and a key supply zone that could determine the next directional move. A decisive breakout and sustained close above this area would reinforce the bullish outlook, opening the door for an advance toward the 163.00 level and potentially higher as positive momentum strengthens. Meanwhile, the Volume Profile indicates a high concentration of trading activity around current price levels, making any breakout or breakdown from this range particularly significant in shaping the pair’s next move.
On the downside, continued failure to overcome the current resistance zone could trigger a corrective pullback toward 161.20, the first key support level, followed by 160.53, which represents an important technical base for the current uptrend. In my view, the bullish scenario remains favored as long as USD/JPY holds above 161.20. However, a break below this support would increase the likelihood of a deeper correction before buyers attempt to regain control.
Support Levels: 161.20 – 160.53 – 159.50
Resistance Levels: 161.90 – 162.60 – 163.00
