FPG USDJPY Market Report February 20, 2026

On the H1 chart, USDJPY initially traded within a sideways channel in the 152.56–153.74 range, with 152.56 serving as support and 153.74 as resistance, reflecting a balanced market structure. After this consolidation phase, a bullish rally emerged from around 152.69, as price rebounded near the lower boundary and decisively broke above the channel resistance, confirming strong upward momentum. The rally extended aggressively and eventually peaked near 155.33, marking the completion of the bullish impulse. Following this advance, price transitioned into another consolidation phase, currently fluctuating between approximately 154.53 and 155.33, forming a higher-level sideways structure after the strong bullish expansion.

From a technical indicator perspective, price remains supported above the midline of the Bollinger Bands, with the upper band previously expanding during the rally phase — a sign of strong volatility expansion. The Parabolic SAR dots have shifted below price again after the recent pullback, indicating a short-term bullish bias. Meanwhile, the Stochastic oscillator has rebounded from the oversold area and is now pointing upward, suggesting recovering momentum, although it has not yet reached extreme overbought territory. This combination reflects consolidation with a mild bullish inclination rather than a confirmed reversal.

USDJPY strengthened toward the intraday resistance area after the latest U.S. jobless claims came in lower than expected, reinforcing the dollar and pushing the 10-year U.S. Treasury yield higher. On the Japanese side, the yen remained under pressure after Japans latest Inflation Rate held steady, signaling limited immediate policy urgency and allowing the pair to maintain its bullish momentum.

Market Observation & Strategy Advice

1. Current Position: USDJPY is trading around 155.13, consolidating after a strong bullish rally from 152.69 and maintaining a higher-level structure.

2. Resistance Zone: Immediate resistance stands at 155.33, the recent swing high and bullish peak.

3. Support Zone: Nearest support is at 154.53, followed by stronger structural support at 153.74.

4. Indicator Observation: Bollinger Bands show post-rally consolidation, Parabolic SAR remains below price signaling short-term bullish bias, and Stochastic is turning upward, indicating recovering momentum without extreme overbought conditions.

5. Trading Strategy Suggestions:

• Bullish Bias: Bullish bias remains intact as long as price holds above 154.53.

• Breakout Scenario: Break above 155.33 may trigger bullish continuation setups.

• Pullback Scenario: Rejection near 155.33 could open short-term pullback opportunities toward 154.53.

Market Performance:

Forex Last Price % Change

EUR/USD 1.1770 −0.02%

GBP/USD 1.3461 −0.01%

Todays Key Economic Calendar:

US: EIA Crude Oil & Gasoline Stocks Change

AU: S&P Global Manufacturing & Services PMI Flash

JP: Inflation Rate YoY

JP: S&P Global Manufacturing & Services PMI Flash

CN: Loan Prime Rate 1Y & 5Y

DE: PPI YoY

UK: Retail Sales MoM & YoY

EU: HCOB Composite, Manufacturing, & Services PMI Flash

UK: S&P Global Manufacturing & Services PMI Flash

EU: Negotiated Wage Growth

US: Core PCE Price Index MoM

US: GDP Growth Rate & Price Index QoQ Adv

US: PCE Price Index MoM & YoY

US: Personal Income & Spending MoM

US: Fed Bostic Speech

US: S&P Composite, Manufacturing, & Services PMI Flash

US: Michigan Consumer Sentiment Preliminary

US: New Home Sales

Risk Disclaimer: This report is for informational purposes only and does not constitute financial advice. Investments involve risks, and past performance does not guarantee future results. Consult your financial advisor for personalized investment strategies.