USD/JPY at Key Resistance Ahead of Fed Decision

The US dollar remains strong for now, supported by rising oil prices and Middle East tensions.

If central banks do not sound more hawkish than expected, the dollar could face a short-term pullback.

On the broader outlook, the US Dollar Index is still in a consolidation phase, but a move above 100.50 could confirm a bullish breakout and support further gains across dollar pairs like USD/JPY.

For USD/JPY, the pair remains near major resistance around the 160 area. A strong break above this zone could open the door for a much larger move higher, while failure to break could lead to a pullback. On the downside, a break below key support levels may trigger a deeper correction. As the price is already overbought in RSI, if the daily candle closes below the recent trendline, a short-term pullback is possible. Tomorrow's Fed rate decision would be a key factor

USD/JPY Daily Chart

Overall, the dollar trend remains supported, but near-term moves will depend heavily on central bank signals and developments in oil markets and the Middle East.