USD/JPY Stalls at Key Resistance

The US Dollar (USD) is facing a crucial test against the Japanese Yen (JPY), as it attempts to break through the resistance level of 159.60.

The pair has been consolidating below the 50% Fibonacci retracement level of the downward move from the 163.95 swing low to the 155.22 low, which is currently around 158.80.

A close above 160.60 could trigger a fresh increase, with potential targets including 162.00 and 163.20.

The bulls are also being supported by a bullish trend line forming with support near 158.90 on the 4-hour chart.