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The USD/JPY pair is expected to see further gains, with key resistance at 160.71. A break below 159.08 could shift the bias to the downside, extending the corrective pattern from 160.71 as the third leg. Conversely, a decisive break above 160.71 would confirm a resumption of the uptrend, potentially pushing the pair toward 161.94. Technical analysis highlights these levels as critical for determining the near-term direction of the currency pair.
For traders, the focus remains on these pivotal support and resistance levels. A breakout above 160.71 could signal bullish momentum, while a drop below 159.08 might indicate a bearish reversal. This dynamic setup offers opportunities for both long and short positions, depending on how the price interacts with these levels.
The next key developments will hinge on whether USD/JPY sustains above 160.71 or falls below 159.08. Traders should monitor volume and follow-through after these levels are tested. Additionally, broader macroeconomic factors, such as U.S.-Japan interest rate differentials, could influence the pair's trajectory in the coming weeks.
