USDJPY Experiences Bullish Breakout

Market Analysis – August 1

USDJPY has faced persistent resistance at the key psychological level of 148.500 since April, repeatedly failing to break above it despite several bullish attempts. After months of consolidation and accumulation below this threshold, buyers have finally succeeded in pushing the price beyond this significant barrier. This breakout marks a potential shift in market momentum, opening the door for a move toward higher resistance levels.

USDJPY Key Levels

Demand Levels: 145.6770, 137.3640, 129.4880
Supply Levels: 151.2160, 154.8540, 154.8540

USDJPY Long-Term Trend: Bullish

The broader downtrend in USDJPY found support at the 140.000 level, where bearish momentum faded. From that point onward, the market established a clear bullish structure, printing a sequence of higher highs and higher lows that led price action toward the 148.500 resistance. However, price initially struggled to sustain gains beyond this level and instead began consolidating, forming a series of subtle higher lows.

A bullish order block eventually formed just below the 148.500 mark, providing the necessary support for a renewed upward move. Upon retesting this zone, buyers stepped back in with conviction, driving the price through the resistance in a clean breakout. This confirms the strength of the long-term bullish trend and sets the stage for further upside movement.

USDJPY Short-Term Trend: Bullish

In the short term, bullish momentum has remained dominant since May. The Bull and Bear Power indicator has consistently reflected the strength of buyers throughout this period. With the recent breakout above 148.500, USDJPY is now eyeing the next resistance level at 151.2160—its recent swing high. If buyers can maintain control, a retest of this level appears likely, with potential for continued bullish extension toward 154.8540 in the coming sessions.