USDJPY once again tests the critical Fibonacci barrier, fueled by diverging monetary policies.

USDJPY maintains its upward trajectory, breaching the significant Fibonacci barrier at 158.22 (76.4% of 160.19/151.85) that had previously thwarted multiple attempts.

A sustained breakthrough here would signal fresh bullish momentum, extending the ongoing recovery from 151.85 (the low on May 3) and paving the way for further gains beyond 159.

Daily indicators signal a strong bullish sentiment, albeit with potential overbought conditions that could prompt a period of consolidation.

The previous peak at 157.70 (on May 29) is expected to act as support on any pullbacks, providing opportune entry points for bullish positions. However, caution is warranted if the price dips below 157.40 (the rising 10-day moving average), which might sideline bullish sentiment.

Fundamentally, the dollar remains supported as the Federal Reserve maintains its hawkish stance, dampening expectations for an imminent rate cut. Conversely, the Bank of Japan’s unexpectedly dovish tone last week has added downward pressure on the yen, further buoying the USDJPY pair.

Res: 158.43; 159.00; 160.00; 160.19
Sup: 158.22; 157.70; 157.40; 156.97