The pair tests 162.00 resistance after strong May retail sales data bolster expectations for further Bank of Japan policy shifts.
USD/JPY has extended its uptrend, challenging the 2024 peak near 162.00 after breaking out of a brief consolidation. The move follows stronger-than-expected May retail sales, which rose 1.9% month-on-month against a consensus forecast of -0.5%, reinforcing bets on additional Bank of Japan tightening.
Key technical levels include support at 159.65 and 160.40, with resistance at 162.40. A break above 162.00 could target projections at 163.70 and 164.40. Analysts note no signs of a significant pullback, with the recent pivot low at 159.65 acting as a potential catalyst for further gains.
The pair’s momentum reflects broader USD strength and shifting expectations for BoJ policy adjustments amid improving economic data.