USD/JPY Holds Neutral as Consolidations Expected to be Brief

The USD/JPY currency pair is currently in a neutral state, with consolidations expected to be brief as long as the 55-period 4H EMA holds at 163.10.

According to ActionForex.com, if the price breaks above 153.97, it will resume its larger uptrend and reach the 138.2% projection of the move from 152.25 to 160.71 at 166.07.

However, a sustained break below the 55-period 4H EMA would indicate that the pair is already correcting its rise from 155.01, leading to a deeper fall to the 160.46 cluster support (38.2% retracement of 155.01 to 163.97 at 160.54).

In the bigger picture, the rise from 139.87 (2025 low) is seen as another rising leg of the long-term uptrend.

The next target for this trend is the 61.8% projection of the move from 139.87 to 159.44 at 164.34, and a firm break above this level will target the 100% projection at 171.82.