The USD/JPY currency pair is ending the trading week with a strong rally, trading near the 158.37 area. Moving averages indicate a bullish trend. Prices are testing the area between the signal lines, suggesting buying pressure on the US dollar and the potential for continued gains from current levels. In the immediate term, we should expect an attempt at a price decline and a test of the support level near 154.25, followed by an upward rebound and a continued rise toward the area above 162.85.
USDJPY Weekly Forecast October 12 – 16, 2026
An additional signal favoring a rise in the USD/JPY pair this week is a rebound from the support line on the Relative Strength Index (RSI). A second signal is a rebound from the lower boundary of the “Head and Shoulders” reversal pattern. The bullish scenario for USD/JPY this week (October 12–16, 2026) would be invalidated by a drop and a breakout below the 152.05 area. Such a move would indicate a break of the support zone and a continued decline in the pair toward levels below 150.05. A breakout above the resistance zone and a close above the 158.95 level would confirm upward movement for the USD/JPY pair, signaling a break of the upper boundary of the “Head and Shoulders” reversal pattern and the start of an upward move toward higher targets.
USDJPY Weekly Forecast October 12 – 16, 2026 suggests a potential bearish correction and a test of the support level near 154.25, followed by a resumption of the pair’s rise toward levels above 162.85. A test of the trend line on the Relative Strength Index (RSI) would serve as an additional signal supporting this upward trend. The bullish scenario would be invalidated by a drop and a breakout below the 152.05 level, which would indicate a continued decline with a potential target below the 150.05 area.
