USD/JPY Technical Forecast: 158.500 Floor Retest for Preparing for New Highs?

Key Takeaways (TL;DR):

• Weekly charts show a clear bullish trend with strong support rejections.
• Short-term daily action hints at selling pressure despite the larger uptrend.
• Key economic events like Tuesday's Retail Sales and Fed Testimony will spark volatility.
• Bullish targets sit near 159.800, while bearish setups aim for 157.000.

Many beginners get completely lost trying to predict exactly where the massive forex market will violently bounce next. This is a huge mistake. Instead of guessing blindly, I prefer to look closely at simple price action and let the levels speak for themselves. Tracking the historical behavior of buyers and sellers reveals the best setups. It works like magic

What Are the Key Economic Events That Can Drive USD/JPY Price Action?

Key upcoming and recent high-impact events influencing GBP/NZD trade include: 

1. Core Retail Sales m/m (Tue 8:30 pm): Measures consumer spending while excluding car sales.
2. Retail Sales m/m (Tue 8:30 pm): Measures total overall consumer spending.
3. Fed Chairman Testimony (Tue 10:00 pm): A crucial speech given by the head of the Federal Reserve.

I do not try to guess the exact directional impact of these announcements. My goal is simple. I want to see if these announcements will inject fresh volatility into our charts. This structured approach keeps me completely ready at our key price levels so I can react calmly to the noise.

What Story Does USD/JPY Simple Prince Action is Telling Us? 

Weekly Chart

Looking at the weekly chart, from a pure price action view, USD/JPY remains clearly bullish. Structure and candles suggest price is preparing for a higher move.

What the chart shows:

• Higher low formed → buyers stepping in 
• Strong rejection at support (158.341 - 157.828) → key levels defended 
• Bullish candles → buying pressure confirmed 

Simply put, price failed to break lower, showing seller weakness and potential for upside continuation

Daily Chart

On the daily timeframe, USD/JPY current price is still aligned with the higher timeframe bullish bias, but current price action shows short-term selling pressure.

What the chart shows:

• Price is holding a key daily support (158.731 – 158.431) → key levels well defended by buyers
• Head and shoulders forming → potential reversal signal (bearish to bullish momentum) 
• Buyers weakening → sellers stepping in 
• Bullish candlestick confirmation → upside pressure 

Simply put, while the overall trend is bullish, short-term momentum is turning bearish

How to Spot Technical USD/JPY Using Simple Price Action Analysis?

If you want to spot the right technical bias, you must watch your key levels. We need to carefully examine both the bullish and bearish scenarios for this specific pair.

Bullish Scenario

USD/JPY remains bullish bias if: 

• Price holds at daily support level 2.30689 - 0 2.30391.
• Entry Signal at the exact support level (bullish engulfing at 1h, 2h, 30m) 
• The bullish target price and take-profit area is little below 159.800.

This represents a higher-probability setup, as it is aligned with the overall market trend.

Bearish Scenario

USD/JPY remains bearish bias if: 

• Price breaks and retest properly at potential new weekly resistance level 158.341 - 157.828.
• Properly Rejection daily 50 ema indicator.
• The bearish target price and take-profit area is 157.000.

This is the higher-probability setup since it aligns with the overall trend.

Note: Trading against the trend is generally much less favorable counter -trend trade generally carries lower probability and less favorable risk-to-reward conditions. 

Final Take 

USD/JPY is still bullish overall, but prices are starting to slow down in the short term.

With big news coming in, we’ll likely see volatility; but I’m not forcing the market direction, I’m just watching how price reacts at key levels.

If support holds, we can still push toward 159.800. If it breaks, 157.000 comes into play.

For now, just let price confirm and then react like how we anticipated the scenarios.

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Disclaimer:   
Trading forex and derivative instruments involves substantial risk and may not be suitable for all individuals. Only use funds that you are prepared to lose. It is important to understand how these markets work and the risks involved before trading, and to seek independent financial advice if needed. All market analysis and insights shared are intended for educational and informational purposes only and should not be considered financial or investment advice. April 20, 2026