FX.co ★ Konnect2fx | USD/JPY

USD/JPY H4 Technical Analysis USD/JPY continues to trade in a strong bullish structure on the 4-hour chart, with price holding near 161.30 after an impressive rally from the 160.20 area. The market recently broke above the previous resistance level around 160.70, which is now acting as an important support zone and has been marked as SBR (Support Becomes Resistance) on the chart. Several BOS (Break of Structure) signals confirm that buyers remain in control and that the higher-high and higher-low pattern is still intact. I can see that the strong bullish candles were supported by increasing volume, showing aggressive buying interest during the breakout phase. After reaching the recent high near 161.45, price entered a consolidation range, which is often a sign that the market is absorbing profits before making its next move. The current price action does not yet show a major bearish reversal signal, and buyers are still defending higher levels. As long as the pair remains above the 160.70 breakout area, the overall trend remains positive. The consolidation near the highs suggests that market participants are waiting for fresh momentum before deciding on the next directional move.

The most important area on the chart is the highlighted OB+FVG (Order Block and Fair Value Gap) zone around 160.20–160.35. This area represents a strong demand region where institutional buying previously entered the market. I believe a pullback toward this zone would be technically healthy and could offer buyers another opportunity to join the trend. The blue projection on the chart indicates a possible correction into the imbalance area before a continuation toward higher prices. If bullish rejection candles appear inside the order block, USD/JPY could target 161.60 and potentially extend toward 162.00 in the coming sessions. However, traders should also remain cautious because a strong break below the OB+FVG zone would weaken the bullish structure and increase the risk of a deeper decline toward 159.80. I am watching volume behavior closely because declining volume during the current consolidation may support the pullback scenario. Overall, the broader outlook remains bullish, supported by strong market structure and recent breakout strength. Until sellers successfully break key support levels, short-term dips are likely to be viewed as buying opportunities rather than signals of a complete trend reversal, keeping the upward trend technically intact.