Technical analysis: Will the USD/JPY price rebound resume?

Dmitry Lukashov IFC Markets

USD/JPY technical analysis summary

Buy Stop։ Above 114.01

Stop Loss։ Below 113.79

Indicator	Signal
RSI	Neutral
MACD	Neutral
Donchian Channel	Buy
MA(200)	Buy
Fractals	Neutral
Parabolic SAR	Buy

USD/JPY chart analysis

The technical analysis of the USDJPY price chart on 1-hour timeframe shows USDJPY: H1 is attempting to retrace up above the 200-period moving average MA(200). The price reversed its rising after hitting a weekly high a day ago. We believe the bullish movement will resume after the price breaches above the upper bound of the Donchian channel at 114.01. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 113.79. After placing the order, the stop loss is to be moved to the next fractal low indicator, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental Analysis of Forex - USD/JPY

Japan’s economic contraction was bigger than expected in the third quarter. Will the USDJPY price rebound resume?

Japan’s economy contraction was bigger than expected in the third quarter: the Cabinet Office reported the Q3 gross domestic product (GDP) declined 0.8% over quarter following 0.5% growth in Q2, when an 0.2% decrease was forecast. This is bullish for USDJPY.

Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.

Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

GBP/USD extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD stays offered just above 1.1400

EUR/USD keeps the downtrend well in place for yet another day, challenging the 1.1400 contention zone on Tuesday. The continuation of the selling impulse in spot comes amid decent gains in the US Dollar, which continues to find support in the persistent effervescence surrounding the US-Iran crisis.

Middle East crisis intensifies, Gold up

Gold now seems to have embarked on a consolidative phase below the key $4,100 mark per troy ounce in the latter part of Tuesday’s session. Meanwhile, uncertainty surrounding the Middle East conflict and rising expectations for a hawkish Fed policy outlook are expected to limit the precious metal’s bullish momentum in the near term.

XRP rebounds on rising on-chain activity

Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).

The Iranian war has again risen

The Iranian war has again risen to the top of the economics factor list. There is no end in sight. Intelligence experts say the current level of offense/retaliation will not change minds in Tehran, while in Washington, Trump fears all-out war, which would mean boots on the ground.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.