USD/JPY Price Outlook – Trade SetupU.S. Dollar / Japanese YenFOREXCOM:USDJPYATFX_Global📊 Technical Structure USDJPY On the 1H chart, USD/JPY is trading within a well-defined ascending channel. The pair recently encountered selling pressure near the 157.00 level and has pulled back toward the channel's midline and a horizontal Support Zone ranging from 155.56 to 155.77. The price action remains structurally bullish as it continues to print higher highs and higher lows. Currently, the pair is testing the internal support of the channel. A successful defense of this zone could lead to a retest of the upper boundary and the primary Resistance Zone at 157.12 – 157.28. Short-term bias: Bullish above 155.44; corrective risk below 155.44. 🎯 Trade Setup (Trend Continuation Scenario) Entry Zone: 155.56 – 155.77 Stop Loss: 155.44 Take Profit 1: 157.12 Take Profit 2: 157.28 Risk–Reward Ratio: Approx. 1:4.01 📌 Invalidation:A sustained break and 1H candle close below 155.44 would invalidate the immediate bullish setup, signaling a potential break of the ascending channel and a deeper correction toward the 154.50 level. 🌐 Macro Background The USD/JPY pair is currently navigating a mix of US policy uncertainty and shifting BoJ expectations: Tariff Uncertainty: The US Dollar has softened as traders grapple with President Trump’s response to the Supreme Court's verdict. US Trade Representative Jamieson Greer confirmed plans to raise tariff rates to 15% or higher for many countries within a 150-day window, creating "policy fog" that pressures the Greenback. BoJ Policy Stance: BoJ Governor Kazuo Ueda signaled a data-dependent approach, stating he will scrutinize figures from the March and April meetings before deciding on further rate hikes. While rate hikes are expected to continue if forecasts are met, Prime Minister Sanae Takaichi has expressed reservations, adding to JPY volatility. Upcoming Data: Market participants are bracing for Japan’s Tokyo CPI and US PPI reports due on Friday, which will provide critical cues for inflation trajectories in both nations. 🔑 Key Technical Levels Resistance Zone: 157.12 – 157.28 Support Zone: 155.56 – 155.77 📌 Trade Summary USD/JPY remains in a technical uptrend despite the recent "tariff fog" weighing on the USD. The pair is currently testing a high-confluence support area where the channel midline meets horizontal demand. Preferred strategy: Look for long entries within the 155.56 – 155.77 zone, targeting a move back toward 157.00+, provided the 155.56 floor remains intact. ⚠️ Disclaimer This analysis is for reference only and does not constitute trading advice. Financial markets involve significant risk; proper risk and position management are essential.