USD/JPY Bulls Take Control with Strong Bounce

USD/JPY Price Analysis – September 18, 2025

USD/JPY has turned bullish as buyers have staged a powerful rally from a major support level. This strong upward move is occurring within a broader market consolidation, suggesting that the pair is gearing up for a potentially significant directional breakout. With momentum now firmly in their favor, the bulls currently have the upper hand.

US Dollar / Japanese Yen Key Levels

Support Levels: 146.25, 143.81
Resistance Levels: 148.80, 150.35, 151.95

US Dollar / Japanese Yen Long-Term Trend: Ranging (Daily Chart)

USD/JPY shows a market that has been consolidating for several months, leading to a Bollinger Band compression. This narrowing of the bands indicates that volatility is contracting and often precedes a powerful breakout. The most recent and significant price action within this squeeze is a successful defense of the 146.25 support, which has acted as a springboard for the current rally.

Currently trading at 147.95, the pair is showing clear bullish momentum. The Relative Strength Index (RSI) has decisively crossed above the neutral 50-midline, a classic technical signal that momentum has shifted in favor of the buyers. The price is now challenging the middle Bollinger Band (the 20-day moving average), a key hurdle. A sustained close above this level would further solidify the bullish case and open the door to a test of the upper part of the range.

US Dollar / Japanese Yen Short-Term Trend: Strongly Bullish (4-Hour Chart)

The 4-hour chart provides a detailed view of the recent bullish impulse. The price has rallied strongly and with conviction since bouncing from the lows around September 17th, forming a clear uptrend of higher highs and higher lows.

The strength of this rally is powerfully confirmed by the indicators. The Relative Strength Index (RSI) is strong at 58.15, confirming the bullish trend.

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