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The USD/JPY pair rebounded from its 2022 low of 155.01 last week but stalled near 159.33, failing to break through key resistance. Technical analysts at ActionForex maintain a neutral bias for the week, with a potential target at 160.71 if the pair clears 159.24. A breakdown below 157.30 could shift the bias to bearish, signaling the start of a third corrective wave in the short-term pattern. The pair's movement remains within a defined range between 155.01 and 160.71, with traders closely watching for a breakout.
For forex traders, this analysis highlights critical support/resistance levels that could dictate short-term volatility. A breakout above 160.71 might attract long positions, while a drop below 157.30 could trigger short-term selling pressure. The neutral bias suggests traders should remain cautious, avoiding overexposure until a clear directional move emerges. Given the pair's sensitivity to U.S.-Japan interest rate differentials, any Fed or BoJ policy shifts could amplify price swings.
MENA investors with forex exposure should monitor the USD/JPY range closely, as a sustained move beyond these levels could impact Gulf-based carry trades and hedging strategies. Key upcoming events include U.S. nonfarm payrolls and BoJ policy statements. Traders should also watch for potential Fibonacci retracement levels within the 155.01-160.71 range as possible entry/exit points.
