USDJPY Undergoes Bearish Trend With Emerging Bullish Reversal Signals ‎

USDJPY Analysis – March 28

The USDJPY pair has been in a sustained bearish trend; however, recent price action indicates a potential bullish reversal. A significant bullish pattern has emerged, suggesting the possibility of a shift in momentum.

‎USDJPY key Levels

Demand Levels: 148.000, 146.440, 143.600
Supply Levels: 152.300, 154.800,158.750‎

‎USDJPY Long-Term Trend: Bearish

Since forming a major bullish low in mid-September 2024, USDJPY extended its rally toward the 158.750 resistance level, where it established a key high before reversing into a bearish trend. The subsequent decline breached the intermediate low from early December 2024, accelerating the bearish movement and pushing price below the 148.800 demand zone toward 146.440.
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‎However, a reverse head and shoulders pattern has now formed, signaling a potential bullish reversal. Additionally, price has moved above the Moving Average, reinforcing a bullish bias, while an uptick in the daily Relative Strength Index (RSI) suggests increasing bullish momentum. These factors indicate a growing probability of a bullish trend emerging in the longer term.

‎USDJPY Short-Term Trend: Bearish

‎On the 4-hour timeframe, the Moving Average still signals a bearish outlook, as price remains below it. Likewise, the RSI reflects bearish conditions, with price strength declining as it targets the 4-hour Fair Value Gap (FVG).
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‎‎Despite the prevailing bearish structure, the market is showing signs of a possible bullish takeover. Price appears to be setting up for a shift in momentum. This reinforces the expectation of bullish forex signals in the near future.
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