USD/JPY – 2H – BUY

The 2H USD/JPY signal is a confluence of momentum and mean-reversion indicators turning bullish after a recent pullback. The CCI and CMO zero-line crosses, along with the RSI midline cross up, indicate a shift in short-term momentum from bearish to bullish. The price has reclaimed the middle Bollinger Band and the DEMA has turned up, suggesting the pullback may be losing steam. The WILLR overbought entry and the STOCHF KD cross down, however, are early warnings that the immediate upside could be limited, and a minor retracement might precede further gains. The DX Trend Weak signal suggests the prevailing downtrend on higher timeframes is losing strength, which could allow a counter-trend bounce to develop.

However, the higher timeframes remain firmly bearish, with the 8H and 12H trends very strong and the 1D trend solid. This means the 2H bullish signal is likely a corrective move within a larger downtrend. The nearest resistance at 158.570 is a critical level; a break above it would shift the bias more neutral, while a failure to hold above the nearest support at 155.224 would invalidate the bullish setup. Traders should watch for a potential pullback to the support zone before considering long positions, and manage risk tightly given the conflicting higher-timeframe trend.