USD/JPY – False Breakdown at Support Signals Bullish Opportunity

The USD/JPY pair has just reached a key support zone, forming a false breakdown at the lower boundary of the local trend. The US dollar is showing strength at this time, which could provide an opportunity for a recovery in this currency pair.

Currently, price is pausing at strong support, while global financial markets remain highly volatile and increasingly dependent on US economic data. The topic of interest rate hikes in Japan seems to have been forgotten, as traders now focus primarily on key economic indicators from the West.

On the chart, we can see two key triggers—one for a buy and one for a sell. However, given both the global and local trends, the market bias remains bullish. Therefore, the preferred strategy at this stage is to look for buying opportunities (long positions).

Do you agree with this outlook? Or do you think USD/JPY could dip further? Let’s discuss!