USDJPY Makes Another Attempt to Break Resistance

Market Analysis – July 15

USDJPY is back at a long-standing resistance level of 147.720. While buyers have been active, signs of exhaustion are emerging as technical indicators suggest the pair is in overbought territory.

USDJPY Key Levels

Demand Levels: 142.150, 140.280, 137.240
Supply Levels: 147.720, 151.150, 154.670

USDJPY Long-term Trend: Ranging

The market has repeatedly failed to break through 147.720 since April. Although the structure shows a rising triangle due to higher lows, the Williams Percent Range (W%R) now reads overbought. This suggests caution as the price approaches the top of the range.

The Relative Strength Index (RSI) also confirms overbought conditions on the higher timeframe. While this is not a definitive reversal signal on its own, it often implies that momentum may be stalling or a pullback could be near, especially at a critical resistance level.

USDJPY Short-term Trend: Bullish

As the price currently tests the resistance zone, lower timeframe traders are advised to watch for confirming structures. A breakout above resistance with strong follow-through would support the bullish case. However, if signs of rejection or divergence emerge, a reversal could follow, respecting the broader ranging nature of the pair.

Until confirmation arrives, the market remains in a state of balance, with both breakout and reversal scenarios on the table.