USDJPY - 6 April 2026USD/JPYOANDA:USDJPYarseniussofianTechnical Analysis – USD/JPY (Current Structure) Market Structure USD/JPY previously experienced a clear bearish corrective move after reaching a local high near 160.40, forming a sequence of lower highs and lower lows. However, recent price action shows a strong bullish recovery, followed by a consolidation phase, indicating a potential shift from bearish correction to a neutral or early bullish structure. The market is currently transitioning from a downtrend into a range-bound accumulation phase. Current Formation Price is forming a base / ranging structure between approximately 159.30 – 159.75, after a strong impulsive rebound. This structure reflects a classic: Drop → Base → Potential Rally Such formations often precede bullish continuation, provided that resistance is broken with confirmation. Key Levels Resistance Zone (Breakout Level): 159.70 – 160.00 This area aligns with previous supply and Fibonacci retracement levels. Major Target: 160.30 – 160.50 A strong supply zone and previous high. Support Zone (Base Area): 159.30 – 159.40 Current consolidation support and demand zone. Lower Support: 158.70 – 159.00 Key demand area if breakdown occurs. Price Action Insight Strong bullish impulse from the lows confirms buyer re-entry Current consolidation shows price stability and reduced selling pressure Multiple rejections from the lower boundary indicate support holding firmly This suggests the market is likely accumulating liquidity before a potential breakout. Technical Interpretation The structure indicates a potential: Accumulation → Breakout → Continuation As long as price remains above the 159.30 zone, the bullish continuation scenario remains valid. Trading Scenarios Bullish Scenario (Primary Bias) Price holds above 159.30 Breakout and close above 159.70 Continuation toward 160.30 – 160.50 Bearish Scenario (Invalidation) Breakdown below 159.30 Loss of range support Potential decline toward 158.70 Momentum & Behavior Momentum is recovering toward bullish Current range reflects market indecision but not weakness Risk of false breakout remains, especially near resistance Conclusion USD/JPY is currently consolidating after a strong recovery, forming a base structure that supports a potential bullish continuation. A confirmed breakout above 159.70 would likely open the path toward the 160.30 area. However, failure to hold above 159.30 would invalidate the bullish setup and shift the bias back to bearish in the short term.