USDJPY – Bulls Maintain Control, Focus Shifts Toward Key Barriers Near 160

USDJPY maintains a firm tone and is approaching Monday’s peak at 158.89, after the broader uptrend from the February 12 low at 152.26 was only briefly interrupted by a shallow correction between 158.89 and 157.27 during Monday and Tuesday. The rally initially stalled at the upper 20-day Bollinger band, while the subsequent dip was contained by the rising 20-day moving average, leaving recent price action confined within this supportive channel.

The daily technical structure remains clearly bullish, supported by strong positive momentum and multiple bullish crosses among the ascending daily moving averages, which favors another test of the 158.89 barrier. A sustained break above this level would open the way toward the next key resistance points at 159.45, the 2026 peak recorded on January 14, followed by the psychological 160.00 level.

Market participants remain cautious as the pair moves closer to the 160 region, where Japanese authorities could potentially intervene to support the weakening yen.

Attention is also turning to next week’s policy meeting of the Bank of Japan, where interest rates are widely expected to remain unchanged at 0.75%. However, growing expectations for a 25-basis-point rate increase by the end of June and another possible move in early 2027 could act as a potential headwind for further upside in the pair.

On the downside, initial support lies around the 158.00 zone, followed by 157.39, where the ascending 10-day moving average — which has guided the trend for nearly three weeks — is located, while stronger support is seen at 156.20, marked by the 55-day moving average.

Res: 158. 89; 159.22; 159.45; 160.00
Sup: 158.00; 157.39; 156.20; 155.71