Japanese Yen Technical Forecast: USD/JPY Bulls Lying in Wait
USD/JPY has carved the June opening-range just below resistance- the battle lines drawn ahead of the FOMC. Levels that matter on the Japanese Yen weekly technical chart.
Share this:
Japanese Yen Technical Forecast: USD/JPY Weekly Trade Levels
- Japanese Yen breaks out of multi-month consolidation / yearly opening-range
- USD/JPY rally approaching major resistance hurdles ahead of FOMC, BoJ
- Resistance 140.33/72, 142.50 (key), 147.69- support 137.60s, 136.49/80, 132.46
The Japanese Yen is poised to mark a second weekly gain against the US Dollar with USD/JPY off by more than 1.5% from the yearly high. While a breakout of the yearly opening-range keeps the broader focus weighted to the topside, the advance is now approaching key technical hurdles into uptrend resistance with the FOMC and BoJ interest rate decisions on tap- risk for some price inflection in the weeks ahead. These are the updated targets and invalidation levels that matter on the USD/JPY weekly technical chart.
Review my latest Weekly Strategy Webinar for an in-depth breakdown of this Yen setup and more. Join live on Monday’s at 8:30am EST.
Japanese Yen Price Chart – USD/JPY Weekly
Chart Prepared by Michael Boutros, Sr. Technical Strategist; USD/JPY on TradingView
Technical Outlook: In last month’s Japanese Yen technical forecast we noted that, “USD/JPY is trading just below resistance near the 2023 range highs with price continuing to contract within the confines of a massive multi-month consolidation pattern. From a trading standpoint, the trade remains constructive while above yearly open with a breach / close above the December trendline needed to fuel a larger breakout in USD/JPY.” A breakout the following week fueled a rally of more than 5.5% off the May low with the advance exhausting just ahead of uptrend resistance into the close of the month.
The June opening-range is now set just below resistance at the 100% extension / yearly high-close at 140.33/72 with a more significant zone just higher at the 61.8% retracement of the 2022 decline at 142.50- look for a larger reaction there IF reached. Ultimately a pivot above the upslope is needed to mark resumption towards the 2022 high-week close at 147.69.
Initial weekly support now rests with the November slope (red – former resistance) near ~137.60 backed by the February high-close / 52-week moving average at 136.49/80- losses should be limited to this threshold IF price is heading higher on this stretch. Broader bullish invalidation now raised to the 61.8% Fibonacci retracement of the yearly range at 132.46.
Bottom line: A breakout of the yearly opening-range in USD/JPY is now testing the first major resistance hurdle. From a trading standpoint, losses should be limited to 136.49 IF price is heading higher on this stretch with a breach above 142.50 ultimately needed to mark resumption of the broader uptrend. I’ll publish an updated Japanese Yen short-term outlook once we get further clarity on the near-term USD/JPY technical trade levels.
Key Economic Data Releases
Economic Calendar - latest economic developments and upcoming event risk.
Active Weekly Technical Charts
- Australian Dollar (AUD/USD)
- British Pound (GBP/USD)
- US Dollar (DXY)
- Gold (XAU/USD)
- Crude Oil (WTI)
- Canadian Dollar (USD/CAD)
- S&P 500, Nasdaq, Dow Jones
- Euro (EUR/USD)
--- Written by Michael Boutros, Sr Technical Strategist with FOREX.com
Follow Michael on Twitter @MBForex
Related tags:
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
USD/JPY falters, EUR/USD awaits French bond verdict
The yen has reacted to falling US yields, but the euro faces a different problem. Could French government bond yields provide the additional push needed to break EUR/USD's downtrend?
US Dollar Short-term Outlook: USD Four-Week Rally Stalls Below Key Resistance 10 8 2026
DXY is holding in a tight range beneath major resistance as traders await the next catalyst from inflation expectations and Fed repricing.
Canadian Dollar Technical Outlook: USD/CAD Five-Week Rally Sets Up Major Breakout Test 10 8 2026
USD/CAD is holding near fresh yearly highs, with a tight October range keeping the focus on a potential breakout through major resistance.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.