USD/JPY – 2H – BUY

The USD/JPY signal on the 2H timeframe is strongly bullish, with a confluence of momentum and pattern indicators firing together. The Bear Flag pattern suggests a bullish continuation after a brief consolidation, while the Aroon indicators (Cross Up, Strong Uptrend, and Aroon Oscillator Zero Cross Up) confirm that the uptrend is gaining strength and breadth. The Balance of Power (BOP) Zero Cross Up and Stochastic RSI (KD Cross Up) add further confirmation of buying pressure and momentum shifting upward. Additionally, the HT Trendline Retreat Up and MAMA Price Retreat Up indicate that price is pulling back to key dynamic support levels, offering a potential entry point for the continuation move.

However, the higher timeframes (2H and above) are showing a very strong bearish trend, which creates a conflict. The bullish signal is primarily a counter-trend move within a larger downtrend. The nearest resistance at 163.90400 is a critical level; if price fails to break above it, the bullish scenario could be invalidated. Conversely, the nearest support at 155.22400 is far below, suggesting that a significant move would be needed to change the higher timeframe trend. Traders should watch for a decisive break above resistance to confirm the bullish bias, while being aware that the higher timeframe trend may limit upside potential.