FX.co ★ sangita_murmu | USD/JPY

USD/JPY four-hour chart, my current view is that the pair is sitting at a very important decision area. Price is trading around the 159.30–159.35 region, after recovering strongly from the 158.00 area. Personally, I see the market as being in a consolidation phase rather than a clean directional trend, with buyers gradually rebuilding momentum but still facing significant resistance overhead The first thing that stands out to me is the sequence of higher lows that has developed since the decline toward the 158.00 region. This suggests that buyers are still willing to step in on dips. The recent upward movement has also pushed price back toward the 159.40–159.50 zone, which I consider the most important resistance area on this chart. This region has repeatedly attracted selling pressure, so I would not consider the bullish scenario confirmed until USD/JPY manages to break above it convincingly. For me, the 159.50 level is more important than simply being another horizontal resistance. It represents the upper boundary of the current consolidation structure. A strong four-hour candle closing above 159.50, followed by a successful retest of the same area as support, would significantly improve the bullish setup. In that case, I would start looking toward 160.00 first, followed by the 160.50–161.00 area if momentum remains strong On the other hand, I would be cautious about buying directly underneath 159.50. The pair has already shown several attempts to move higher without producing a sustained breakout. From my perspective, this creates the possibility of another rejection and a pullback toward the lower part of the range The first support I am watching is around 158.70–158.80. This area has recently acted as a reaction zone and is important for maintaining the current short-term bullish structure. If price holds above it and produces another higher low, I would consider that constructive. Below this zone, however, my attention would shift toward 158.20–158.00, where the previous buying reaction occurred. The Parabolic SAR on the chart is also worth watching. The dots have recently moved underneath price in several sections of the recovery, supporting the idea that short-term bullish momentum is still present. However, I would not use the SAR alone as a reason to enter a trade because the pair is clearly capable of producing false signals while moving sideways My preferred scenario is therefore conditional rather than aggressively bullish. I would like to see a confirmed H4 breakout above 159.50 before considering the upside to be more reliable. A failure at this resistance followed by a break below 158.70 would make me much more cautious and could open the door toward 158.00 and potentially lower.