USD/JPY – Bulls Maintain Control for Further Upside, BoJ Intervention Possible

The near-term action remains trapped in an extended sideways range below the new multi-week high of 158.07 and is consolidating December’s 5% advance.

Limited pullbacks, currently contained by the rising 10DMA, suggest that larger bulls remain intact and could resume their momentum after this consolidation period.

The dollar continues to be supported by the Fed’s latest hawkish shift in interest rate policy, the ongoing policy divergence between the Fed and other major central banks, and the expected heightened demand for safe-haven assets amid uncertain economic and political conditions.

Bullish technical indicators reinforce the potential for further gains, with a final push towards the psychological 160 level and a possible retest of the 2024 peak at 161.95 (a multi-decade high). However, the risk of BoJ intervention at these levels must be factored into the analysis.

Res: 158.07; 158.86; 160.00; 161.00
Sup: 157.01; 156.55; 156.00; 154.85