The USD/JPY currency pair is in an uptrend, supported by USD/JPY strength. However, the pair has entered a multi-week consolidation phase, as evidenced by major supply and demand areas on the chart.

The 160,000 level remains the main focus as the gray display area at the top of the chart represents this sensitive price point. After retracing from this level, the price is currently trading at 159.404, which is not only a technical barrier but also one of the most monitored levels in the market. Traders are generally cautious in these ranges, anticipating that the Bank of Japan may intervene at these historical peaks.

Bollinger Bands indicator: Compared with the violent market fluctuations at the end of March and early April, the Bollinger Bands of this indicator are currently in a state of contraction. The price has retraced from the upper boundary of the index and is currently trading below the 20-day simple moving average level of 159.843, which has turned from support to short-term resistance; this indicates that the recent upward momentum is weak.

The RSI is currently at 55, while the signal line has reached 58. The indicator line (purple line) has crossed below the signal line (yellow), confirming the negative divergence that has been building since the end of March.

notes:

The Bank of Japan’s monetary policy meeting scheduled for April 27-28 is the highlight of next week, as maintaining interest rates without adopting a hawkish tone may cause the yen to weaken, prompting traders to retest the 160,000 mark.

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