USD/JPY bulls remain cautiously active

• USDJPY tiptoes higher; forms encouraging candlestick pattern

• A slew of obstacles still lie ahead; bullish outlook above 147.50

USDJPY attempted a modest recovery after dipping to 141.95 early in the week. While Tuesday’s bullish move was limited, the formation of a small, inverted hammer candlestick suggests potential for upward momentum. Confirmation, however, would require a solid green candlestick to follow.

The upward trajectory in the RSI and MACD keeps hopes for a rebound alive as investors await the release of US Q1 GDP growth and core PCE data later today. On the other hand, the falling stochastics undermine the strength of any potential bullish action, while the negative slope in the exponential moving averages (EMAs) lends further support to the prevailing downtrend.

Immediate resistance lies at the 143.00 mark, followed by the 20-day EMA and the 144.23–145.35 constraining zone. A break higher could open the door to the 50-day EMA and the tentative resistance trendline near 147.50 – also the 38.2% Fibonacci retracement of the 2025 downtrend.

On the downside, a close below 142.20 could drag the pair back toward 139.50–140.00. A deeper decline could test support at 137.70–138.50, and potentially 137.20, a break of which could clear the way to 132.85.

In summary, while USDJPY bulls remain cautiously active, a confirmed bullish outlook hinges on a decisive move above 147.50.