US Dollar Stages Potential Reversal Against Japanese Yen

The USDJPY currency pair extended its downside move from the 160.21 high to a low of 151.86 in recent trading sessions. However, the subsequent bounce from 151.86 has reached as high as 154.52, suggesting that the bearish move from 160.21 may have completed.

Potential for Further Upside After Bounce

Following the bounce from 151.86, further upside follow-through in the USDJPY appears likely over the coming days. The first key upside target for the pair is the 155.00 handle.If buyers can push the USDJPY above 155.00, the next objectives would be the 156.30 and 158.00 areas.

Key Support Level at 153.30

While the technical outlook has shifted to a more bullish bias in the near-term, traders will want to keep a close eye on the 153.30 area as initial support. A breakdown below this level could see the USDJPY retrace back toward the 151.86 low.If the 151.86 support gives way, it would likely signal that the broader downtrend from 160.21 has resumed, with the next key downside target in the 150.26 zone.

Key Levels to Watch

For now, the key levels to watch in the USDJPY are the 155.00, 156.30, and 158.00 upside targets, along with the 153.30 and 151.86 support areas.

As long as the pair remains above 153.30 support, the near-term technical bias will remain tilted to the upside, with the 155.00, 156.30, and 158.00 levels being the next objectives.However, a breakdown below 153.30 and 151.86 would likely confirm a resumption of the broader downtrend from 160.21, with the 150.26 zone being the next key downside target.

The USDJPY has shifted to a more bullish near-term technical outlook after the recent bounce from 151.86. While further gains appear likely, traders will want to keep a close eye on the key support levels at 153.30 and 151.86 for potential signs that the broader downtrend could be reasserting itself.