USD/JPY Analysis

Current Market Overview

As of January 9, 2026, the USD/JPY currency pair closed at 158.0185, reflecting a gain of +1.2300. The market has shown a consistent upward trend, indicating increasing buy interest among investors.

Short Term Outlook

In the short term, the USD/JPY has demonstrated a positive momentum with a recent break above the resistance level at 157. This breakout suggests that the currency pair is likely to continue its upward trajectory. The immediate target is the resistance level at 159, which is approaching. However, traders should be cautious as this level may trigger a negative reaction if the price fails to break through.

Volatility in the short term has been relatively low, with a 1-day volatility of 0.51% and a 5-day volatility of 1.61%. This indicates a stable market environment, conducive for short-term trading strategies.

Medium Term Outlook

From a medium-term perspective, the USD/JPY is firmly positioned within a rising trend channel. The analysis indicates that the currency pair is likely to continue appreciating, with potential targets set at 159 or higher. A successful breakout above 159 would further confirm the bullish sentiment and could lead to additional gains.

Over the next one to six months, the recommendation remains positive, as the overall trend suggests that investors are willing to pay higher prices for USD/JPY. The medium-term volatility is projected to increase, with a 66-day volatility of 7.60%, indicating potential for larger price movements.

Conclusion

The USD/JPY currency pair is currently in a strong upward trend, with positive signals for both short and medium-term trading strategies. Investors should remain vigilant around key resistance levels and be prepared to adjust their positions based on market movements.