USD/JPY continues to trade with a strong bullish bias as the pair advances toward the key 161.95 resistance level, which marks a fresh 40-year high. The Japanese Yen remains under pressure against the US Dollar, with buyers maintaining firm control of the market structure.
At the time of writing, USD/JPY is trading around 161.26, holding above important support levels and showing no significant signs of a trend reversal. Market sentiment remains positive as traders continue to favor the US Dollar amid ongoing monetary policy divergence between the Federal Reserve and the Bank of Japan.
Technical Analysis The 4-hour chart highlights sustained bullish momentum. The Relative Strength Index (RSI) is currently around 66, approaching overbought territory but not yet signaling exhaustion. This suggests that buyers still have room to push prices higher before a potential correction develops. Meanwhile, the Moving Average Convergence Divergence (MACD) remains in positive territory, confirming that bullish momentum continues to support the uptrend.
Bullish Scenario If USD/JPY breaks above Thursday's high near 161.79, the pair could challenge the major resistance zone at 161.95. A successful breakout above this historic level may trigger another bullish leg toward: 🎯 162.38 – 127.2% Fibonacci Extension 🎯 162.80 – Extended bullish target 🎯 163.00 – Psychological resistance level
Bearish Scenario On the downside, immediate support remains near 161.00. A break below this area could expose: 📉 160.45 – Thursday's low 📉 160.00 – Psychological support 📉 159.50 – Next significant support zone However, unless sellers push the pair below these levels, the broader bullish structure remains intact.
Market Outlook USD/JPY remains one of the strongest trending currency pairs in the market. As long as the pair holds above 161.00, buyers are likely to remain in control, with attention focused on the crucial 161.95 resistance level. A breakout above this area could open the door for fresh multi-decade highs and further upside momentum.
