The USD/JPY initially moved lower into the US open, driven by risk-off sentiment as investors sought the relative safety of the Japanese yen. This move stood in contrast to the overall trend of US dollar buying. However, following the US-Mexico truce, which is set to last at least for the next month, the pair has shifted towards a more bullish bias, showing signs of recovery.
Despite this positive shift, the corrective move stalled within a swing area between 154.77 and 154.967, preventing further upside momentum. Additionally, the 100-hour moving average, positioned near the high of this swing area at 154.939, is currently in play, acting as a key resistance level.
To strengthen the bullish outlook, the price would need to break above this swing area and the 100-hour moving average. Until that occurs, the price remains within the lower extreme area, which has defined the range over the past few weeks. Without a break above these levels, the bias remains neutral to slightly bearish.