USD/JPY — Range Compression → Expansion Incoming?US Dollar vs. Japanese YenFX:USDJPYTheZimpact💰 USD/JPY has recovered strongly from the previous selloff, building a clear sequence of higher highs and higher lows before entering a large sideways structure. Price is now trading around 159.1, with the market still trapped inside this range and approaching the upper resistance zone. 🏆 Previously: 📈 Bullish scenario The broader recovery structure remains intact. Price has been respecting the sideways range for several weeks, with buyers repeatedly stepping in around the lower parts of the structure. If USD/JPY breaks and holds above the 160.5–160.9 zone, we could expect further upside toward the 163.8–164.0 area. A clean breakout would also confirm that the long sideways structure is finally resolving to the upside. Range breakout → bullish expansion. 📉 Bearish scenario The main risk remains a breakdown from the current sideways structure. If price loses the lower part of the range and breaks below the 155.3–155.8 zone, the current recovery could turn into a much deeper retracement. For now, the 155.3–155.8 area remains the major downside zone to watch if sellers regain control. Range breakdown → bearish expansion. 🎯 Outlook USD/JPY has spent weeks building liquidity inside this sideways structure. Price is now sitting around the middle-upper portion of the range, with the 160.5–160.9 zone acting as the key trigger for the next bullish leg. Break 160.5–160.9 → watch 163.8–164.0. Lose the range floor → deeper downside opens up. The structure is still compressed, and the next clean break could finally reveal the larger move.