USD/JPY — Another breakout attempt?

USD/JPY has recovered strongly after defending a key demand area, showing that buyers are still active despite the recent volatility. The pair is now moving back toward a major supply zone that has previously capped bullish momentum, making this one of the most important levels on the chart.

Bullish scenario

If buyers can break and hold above the highlighted resistance zone, the current recovery could develop into a stronger bullish continuation. A successful breakout would confirm renewed momentum and increase the probability of a move toward fresh highs.

Bearish scenario

If the supply zone rejects price once again, sellers may regain control and push the pair back toward the highlighted demand area. Losing that support would weaken the current bullish structure and shift the focus toward a deeper correction.

For now, buyers have regained short-term momentum, but the real test still lies ahead. The reaction around the upper supply zone will likely determine whether USDJPY is ready for another leg higher or another rejection.