USD/JPY Tests Critical Resistance Amid Overbought Signals and Intervention Risk

The USD/JPY currency pair has risen for five consecutive sessions, reaching a high of 158.83.

Momentum indicators are deeply overbought and showing negative divergence, suggesting that the pair may be due for a brief consolidation between 158.30 and 159.00.

Despite this, analysts expect the USD/JPY to test the critical resistance level of 159.60 in the coming weeks, as long as it holds above the revised strong support level of 157.60.

The pair's approach to the 160.00 threshold, a historically intervention-sensitive zone, requires caution, with the Bank of Japan having spent a record 9.8 trillion yen defending the currency in mid-2024.