USDJPY Technical Analysis: Short-Term Recovery Targets 159.77 Resistance

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of USDJPY for August 18, 2026.

Technical Analysis of USDJPY

USDJPY Daily Chart Insight

(USDJPY Daily Chart, Source: Ultima Markets MT5)

USDJPY remains under broader corrective pressure on the daily chart after the sharp reversal from the July highs, although the latest candles show a recovery from the recent sell-off.

Price is currently trading around 159.432, close to the declining red 16-period moving average, while remaining below both the purple 50-period moving average and the blue 100-period moving average. The MA16 has turned sharply lower, while the MA50 remains above the MA100, leaving the broader structure mixed but with sellers still holding an advantage below the longer moving averages.

Daily RSI stands at 44.21, recovering from its recent low but remaining below the midpoint area. A sustained recovery above the 160.245 region and the blue MA100 would be needed to strengthen the bullish case, while rejection below this zone would keep the broader correction intact.

Key Levels:

• Support 1 (158.550): The nearest visible downside area beneath the current recovery and a level around which recent price action has stabilised.
• Support 2 (157.420): A lower recovery zone that acted as an important base following the recent sharp decline.
• Support 3 (156.855): A deeper support area near the lower boundary of the latest sell-off structure.
• Resistance 1 (159.680): The immediate resistance above the current price and near the upper edge of the latest recovery.
• Resistance 2 (160.245): A key resistance area aligned closely with the blue 100-period moving average (MA100).
• Resistance 3 (161.375): A higher resistance region near the purple 50-period moving average (MA50), which would need to be reclaimed for a stronger medium-term recovery.

USDJPY 2-Hour Chart Analysis

(USDJPY 2-Hour Chart, Source: Ultima Markets MT5)

USDJPY is showing a mildly bullish but consolidating short-term structure on the 2-hour chart. Price at 159.435 is trading above the red 16-period moving average, the purple 50-period moving average, and the rising blue 100-period moving average.

However, the MA16 and MA50 have flattened and converged as price moves sideways around the 159.130–159.680 region, indicating that momentum has slowed after the earlier recovery. RSI at 56.11 remains above the midpoint, supporting a modest buyer advantage without signalling excessive momentum.

The short-term bias therefore remains cautiously bullish, although continued sideways movement is possible unless price can decisively clear the upper consolidation boundary.

Breakout Scenarios:

• Bullish continuation is a possible scenario, triggered by a decisive break and hold above 159.680. Such a move would confirm an upside exit from the current consolidation and reopen the higher price region above the recent range.
• Bearish correction is a possible scenario, triggered by a failure to hold 159.130 followed by a decisive breakdown. This would expose the 158.715 region and bring the rising blue 100-period moving average (MA100) back into focus as the next support area.

USDJPY Pivot Indicator

(USDJPY 30-Minute Chart, Source: Trading Central)

USDJPY is trading at 159.37 on the 30-minute chart, holding above the main pivot at 159.01 and maintaining an immediate bullish preference. Price has recovered from the pivot area but is currently pausing below the first upside target.

RSI stands at 50.75, placing momentum close to neutral, while MACD remains positive at 0.05 but has begun to flatten. The combination suggests that the bullish structure remains intact above the pivot, although momentum has eased and a renewed push would be required to confirm continuation.

• Bullish Breakout: The bullish preference remains valid while USDJPY holds above the 159.01 pivot. A renewed advance would target 159.77 first, followed by 159.97. Confirmation would be strengthened if RSI remains above 50.75 and MACD holds in positive territory around or above 0.05.
• Bearish Rejection: A decisive break below 159.01 would invalidate the immediate bullish preference and expose 158.68 as the first downside target, followed by 158.49. A move in RSI below 50.75 together with MACD falling through the zero line would provide additional bearish confirmation.

Disclaimer Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.