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The USD/JPY pair showed renewed bullish momentum after a minor pullback from a multi-week high of 157.96, which was contained by the rising 10-day moving average (156.34). A hammer candlestick pattern formed on Thursday, signaling a potential reversal of the shallow correction phase. Technical indicators suggest the overall daily chart remains strongly bullish, supported by positive momentum and a break above key resistance levels. Traders are now watching for a sustained move above 157.96 to confirm the continuation of the uptrend, with the next target at 159.00. This development is significant for forex traders, particularly those with positions in USD/JPY or related cross-currency pairs. The hammer pattern and the 10DMA support indicate a high probability of further gains, which could attract new buyers and strengthen the Yen's bearish bias. Market participants should monitor the 156.34 level as a critical support zone—if breached, it could trigger a deeper correction. Broader implications include potential shifts in carry trade dynamics and Yen demand, affecting global forex liquidity. For MENA investors, the USD/JPY movement impacts Gulf-based forex portfolios and cross-border transactions. The bullish bias aligns with the Fed's hawkish stance and Japan's accommodative monetary policy, factors that often drive Yen weakness. Traders should watch upcoming FOMC minutes and BoJ policy statements for directional clues. Key levels to monitor include 157.96 (previous high) and 156.34 (10DMA), with a stop-loss below 155.00 recommended for long positions.
