4 min readUSD/JPY is back in the spotlight as markets react to renewed optimism around US and China trade relations. Following recent comments from the US Treasury Secretary signalling a potential easing of tariffs, traders have moved quickly to reprice risk. The Japanese yen, traditionally viewed as a safe-haven currency, has weakened against the US dollar amid this shift in sentiment. With appetite returning for risk-on assets, USD/JPY is showing strong upside momentum once again.
From a technical perspective, USD/JPY has now reclaimed the 147.00 level, a key pivot area that previously acted as resistance. If bullish momentum holds, the next major high time frame resistance sits around 149.50.
Zooming into the 4-hour chart, price has delivered a clean breakout above the 146.30 zone, which is now acting as a breakout level. This area aligns precisely with the 0.618 Fibonacci retracement level, adding further confluence. If price retraces lower from here, traders may look to the 50 percent Fibonacci level, which coincides with the 147.00 horizontal zone, as a potential area for support and re-entry.
If this move continues to unfold, a deeper pullback to the 0.618 Fibonacci level at 146.30 could also act as a strong support zone and base for a new leg higher.
Above current price, the 0.236 Fibonacci extension sits right on the 149.50 resistance, making that zone particularly significant. With improving macro conditions and positive risk sentiment dominating today’s session, this level may come into focus quickly.
Whether we get a throwback towards the breakout zone or continue higher directly, USD/JPY is shaping up to be one of the most active forex pairs in today’s session.
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