USDJPY Technical Analysis: Sharp Pullback Near 160 Signals Transition Into Consolidation Phase - XS
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USDJPY Technical Analysis: Sharp Pullback Near 160 Signals Transition Into Consolidation Phase

Date Icon 20 March 2026
Review Icon Written by: Linh Tran
Time Icon 3 minutes
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Article Summary

USDJPY saw a sharp correction after approaching the 160.0 resistance zone, signaling a weakening of bullish momentum in the short term. Price has broken below the trendline and the 158.7–159.0 support area, but is currently finding support around 157.3–157.5 (Fibonacci 0.382). In this context, USDJPY is likely to enter a consolidation phase within the 155–160 range as the market balances between the broader uptrend and short-term corrective pressures.

On the H4 timeframe, USDJPY previously maintained a clear uptrend, with price consistently forming higher highs and higher lows while moving within a short-term ascending channel. However, selling pressure intensified significantly as price approached the key resistance zone around 160.0, triggering a sharp and rapid correction.

USDJPY may continue to trade within the 155–160 range in the near term, reflecting a balance between the medium-term uptrend and short-term corrective pressures following the test of the 160 level.

At present, price has broken below the nearest trendline and breached the support zone around 158.7–159.0, indicating that bullish momentum is weakening in the short term. Nevertheless, USDJPY is currently reacting around the support area of 157.3–157.5, which aligns with the Fibonacci 0.382 level as well as a prior consolidation zone.

In a recovery scenario, if USDJPY manages to reclaim the 158.7–159.0 area, the uptrend could resume, targeting the 160.0 resistance level, with potential extension toward the previous highs around 161.8–162.0. On the other hand, if price continues to trade below 159.0, it may retest the support zone at 157.2–157.5. Should selling pressure intensify and this area be broken, the correction could extend toward lower support levels around 156.2–156.5, corresponding to the Fibonacci 0.5 level.

Overall, the broader uptrend on the H4 timeframe remains intact, but the market appears to be entering a phase of correction and consolidation after testing a strong resistance zone, with short-term price action likely to fluctuate within the 155–160 range.

20.3.2026

USDJPY

(Chart powered by TradingView. Charts are for educational and illustrative purposes only and may differ from live trading prices on our platform.)

Disclaimer: The chart reflects the analyst's opinion and does not constitute investment advice. Past performance is no guarantee of future returns. Seek independent advice before making decisions.

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Linh Tran

Linh Tran

Market Analyst

Linh Tran is a member of the Market Analysis team at XS.com, holding a Master’s degree and with experience in the financial markets since 2018. She focuses on macroeconomic analysis, central bank policies, and multi-asset markets including forex, commodities, equities, and cryptocurrencies, delivering structured and data-driven market insights.

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