USD/JPY - H1 chart technical analysis (23/9/2025)

1. Current Trend
The chart is on a 1-hour timeframe (H1) and shows sideways consolidation within a rectangle (boxed area) after a prior downtrend.
Price is currently pulling back slightly after reaching point A, setting up for a potential ABC upward move.

2. Technical Pattern
This chart displays a potential ABC correction / impulse wave within the consolidation zone:
A → B: a small corrective pullback after a minor rally.
B → C: anticipated upward move toward the upper boundary of the rectangle (~0.00684), completing wave C.

The rectangle indicates range-bound trading, meaning buyers and sellers are balanced but the ABC pattern suggests a bullish bias in the short term.

3. Key Support and Resistance Levels
Support:
~0.006745–0.006750: previous swing lows and rectangle base (point B).
0.006720: the lowest point of the current range.

Resistance:
~0.006830–0.006840: upper boundary of the rectangle (point C target).
0.006860: minor psychological level above the rectangle.

4. Trading Strategy
Buy near point B pullback:
Entry: ~0.006745–0.006750.
Stop loss: below 0.006730 to avoid a false breakdown.
Take profit: ~0.006830–0.006840 (upper rectangle boundary, wave C target).

Confirmation signals:
Watch for bullish candlestick patterns at support.
Ensure momentum indicators (e.g., RSI H1) are not overbought.

Risk: If price breaks below 0.006730, the bullish ABC scenario may fail, indicating a possible retest of lower support levels.

5. Summary
USD/JPY is range-bound but forming a short-term ABC upward move.
Point B provides a potential buying opportunity, with wave C targeting the upper rectangle boundary at ~0.00684.
Traders should combine price action at support, ABC pattern, and momentum indicators to increase probability of a successful trade.