USDJPY sustains bullish structure above 156.50 as dollar strength persists; upside resumes above 157.10 while weakness emerges below 156.20 - 05.01.2026

Aetram Global Research - USDJPY (US Dollar vs Japanese Yen)

Aetram Global Research - USDJPY (US Dollar vs Japanese Yen)

USDJPY sustains bullish structure above 156.50 as dollar strength persists; upside resumes above 157.10 while weakness emerges below 156.20 - 05.01.2026

Chart Name: USDJPY (US Dollar vs Japanese Yen)
Current Market Price: 156.85
Current Trend: Short-term trend remains bullish with higher lows forming above rising averages.
Trend Dominance: Bulls maintain dominance as price trades firmly above key moving averages.

Chart Outlook & Prediction

• USDJPY continues to trade in a positive structure after consolidating near recent highs. Price is holding above its medium-term averages, suggesting trend stability rather than exhaustion. A sustained move above 157.10 can open upside toward 157.50 and 158.00. Any dip toward 156.20–156.00 is likely to attract buyers unless broken decisively.

Upcoming Events (Catalysts)

• US economic data and Fed commentary
• Bank of Japan policy stance
• US bond yield movement

Major Support and Resistance

• Support: 156.20 / 156.00 / 155.60
• Resistance: 157.10 / 157.50 / 158.00

Trend, Volume, Dow Theory Analysis

• Dow Theory remains bullish with higher highs and higher lows intact. Volume is steady during consolidation, indicating lack of aggressive selling. RSI stays neutral-positive without divergence, and price remains above the major moving averages, reinforcing trend continuation bias.

Breakout Strategy (Bullish)

• Entry: Above 157.10 / Stoploss: 156.40
• Targets: 157.50 / 158.00 / 158.60

Breakdown Strategy (Bearish)

• Entry: Below 156.00 / Stoploss: 156.60
• Targets: 155.60 / 155.10 / 154.50

Final Takeaway

• USDJPY remains structurally bullish, supported by sustained dollar strength and higher yield dynamics. The pair is consolidating near highs without significant distribution, suggesting continuation potential. Traders should favor buy-on-dips or breakout setups above resistance, while a clean break below 156.00 would signal short-term trend fatigue.

Caution Note

• Positivity Negates On Breaking Below 156.00
• Negativity Negates On Breaking Above 157.10

Disclaimer : This analysis is for educational purposes only and not financial advice. Please consult your financial advisor before making trading decisions.