USD/JPY Technical Analysis

The USD/JPY pair remains in an overall uptrend on the daily chart, with prices surging strongly from Monday’s open. On Wednesday, liquidity above Tuesday’s high was swept. Within a pullback on the 4-hour timeframe, prices are now trading around 146.65. Note that market structure has shifted from bullish to bearish after the low near 146.75 was broken; therefore, a further decline is expected today.

Which Currency Is Stronger Now— the Dollar or the Yen?
The U.S. dollar currently outperforms the Japanese yen, trading near 147 yen amid rising Treasury yields and escalating trade tensions. Investors favor the dollar as an alternative cash haven against potential disruptions in Asian trade, boosting its short-term momentum. However, the yen tends to regain strength once tariff rhetoric eases or U.S. yields retreat, owing to its status as a traditional safe-haven currency. Any sign from the Federal Reserve of slowing its rate-hike cycle, or a warning from the Bank of Japan about excessive yen weakness, could push the dollar lower and trigger a fresh wave of yen buying.

Liquidity Levels
Prices are expected to keep falling toward 146.50, followed by 146.25. The current bearish scenario will be invalidated if prices revisit 147.20.