The currency pair tests resistance at 161.20 after rebounding from key support levels around 155.50.
USD/JPY has regained momentum, approaching its April high as yield differentials between U.S. and Japanese bonds continue to support the pair. Analysts note the rebound followed a defense of a multi-month ascending trend line near 155.50/155.00, with immediate support now at 159.20.
The pair’s upward trajectory aligns with recent trends, as it challenges resistance levels last seen in April. Projections suggest potential for further gains, targeting 161.20 if current momentum persists.
Market focus remains on yield spreads, which have historically influenced USD/JPY movements, particularly amid diverging monetary policies between the Federal Reserve and Bank of Japan.