USD/JPY Bulls Battle Resistance After Reclaiming 200-Day SMA

The USD/JPY pair has made a technical recovery, reclaiming the 200-day simple moving average (SMA) during the latest trading session.

This indicator is widely watched by traders to gauge the long-term trend, and its reclaim suggests that buyers are gaining control.

However, the pair still faces significant resistance ahead, with key levels at 155.00 and 156.50 acting as potential roadblocks for further upside momentum.

The recent recovery is supported by a rebound in US Treasury yields, which have lifted the dollar across the board.

Yet, market expectations of further rate cuts by the Federal Reserve later this year may cap the dollar's gains against the yen.