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The USD/JPY pair is currently testing key resistance at 159.60 after rallying from the 158.25 support zone. A bearish trend line on the 4-hour chart suggests potential selling pressure if the pair fails to break above this level. Meanwhile, EUR/USD advanced toward 1.1820 before retracing, while WTI crude oil remains under $96.40, adding to broader market uncertainty. This technical setup highlights critical junctures for USD/JPY, with the 159.60 level acting as a pivotal barrier for bullish momentum.
For traders, the USD/JPY resistance at 159.60 is a key focus area. A sustained break above this level could signal renewed bullish confidence, while a rejection might trigger a pullback toward 158.25. The pair's performance will also influence USD demand, impacting other cross-currencies like EUR/USD. Additionally, crude oil's weakness below $96.40 could weigh on risk appetite, indirectly affecting USD/JPY dynamics.
The coming hours will be crucial for USD/JPY as it approaches 159.60. Broader market factors, including oil prices and USD strength, will play a role in shaping the pair's direction. Traders should monitor 4-hour chart patterns and volume changes for confirmation of a breakout or reversal. A failure to hold above 159.60 could shift momentum to the bears, testing the 158.25 support.
