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The USD/JPY currency pair continued its lateral trading pattern last week, demonstrating a neutral bias heading into the new week. Technical dynamics suggest a mild bullish inclination as long as the critical support level at 156.36 remains intact. A sustained movement above the 159.02 threshold could extend the current recovery from the recent low of 152.87, targeting key structural resistance at 160.38.
Conversely, a downside break below the key support level of 156.36 would negate the bullish momentum and likely trigger a deeper pullback toward the 152.87 mark. Foreign exchange traders are monitoring these key technical pivot points closely to gauge the potential for a directional breakout or continued range-bound price action.
Market participants will be watching incoming economic data and interest rate differentials between the US Federal Reserve and the Bank of Japan, which continue to drive fundamental sentiment. Oscillations around these critical resistance and support levels will determine the medium-term trajectory for this major currency pair.
