USD/JPY Tests Key Resistance as Long-Term Uptrend Faces Major Decision Point

USD/JPY remains supported within its one-year uptrend as rising US Treasury yields, strong dollar demand, and persistent inflation pressures continue to outweigh growing expectations for further BOJ tightening. Higher energy prices and geopolitical tensions linked to the Strait of Hormuz are also supporting inflation and safe-haven flows into the US dollar.

Technically, the pair is holding above the key 155 support zone while approaching the critical 158-160 resistance area. A confirmed breakout above 158 could strengthen bullish momentum and open the door toward 160. A break above 160 could open the door towards new all time highs. However, failure to hold above 155 would weaken the bullish structure and could trigger declines toward 152, especially if BOJ intervention or weaker dollar sentiment increases pressure on the pair.

Overall, the 155 and 158 levels remain the key areas that will likely determine whether USD/JPY continues its long-term uptrend or enters a deeper reversal phase.

USD/JPY Daily Chart