USD/JPY Stabilizes Amid Technical Momentum, Potential Upswing Looms

Key Highlights

• The USD/JPY pair initiated a modest rally but encountered resistance around 162.80.
• A strong bullish trend line is forming, with support identified at 161.60 on the 4‑hour chart.
• Bitcoin may gather bullish momentum if it manages to close above $65,000.
• WTI crude oil prices showed a modest rebound before sellers resurfaced near $76.20.

USD/JPY Technical Analysis

The U.S. dollar gained momentum after breaking above $160.80 against the yen. The pair edged above 162.00 before meeting selling pressure.

On the 4‑hour chart, the pair again failed to overcome the 162.70 and 162.80 thresholds. It is now pulling back, potentially testing the 38.2% Fibonacci retracement level of the move from the 160.49 swing low to the 162.70 high.

Should further declines occur, support is likely near 161.60, coinciding with a major bullish trend line, the 100‑period simple moving average (red) on the 4‑hour chart, and the 50% Fibonacci retracement.

The first key support zone could be around 160.80, aligned with the 200‑period simple moving average (green) on the 4‑hour chart. A break below 160.80 might open the path toward 160.00, with additional weakness targeting 158.80.

To the upside, resistance remains near 162.80. The next significant barrier could be 163.40; a decisive close above this level may trigger a sharper advance, potentially extending toward 165.00.

Regarding Bitcoin, a fresh upside move is possible, but a close above $65,000 is essential for sustained bullish momentum.

Upcoming Key Economic Events:

• USDA WASDE Report release.
• Canada’s Net Employment Change for June 2026 – Forecast: +10K versus 87.8K previously.
• Canada’s Unemployment Rate for June 2026 – Forecast: 6.6% versus 6.6% previously.

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