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The USD/JPY pair showed a recovery in early trading, approaching the 55-period 4-hour EMA but remaining below the key resistance level of 157.96. Daily pivot points indicate support at 156.64 (S1) and 157.26 (P), with initial resistance at 157.65 (R1). The intraday bias remains neutral as the pair tests critical levels following a rebound from the 152.25 low. Traders are closely monitoring whether USD/JPY can break above 157.96 to retest the 159.44 high or if a breakdown below 155.52 could trigger further declines. For forex traders, the USD/JPY movement is significant due to its sensitivity to global risk appetite and Yen carry-trade dynamics. A sustained move above 157.96 would signal renewed bullish momentum, while a drop below 155.52 could intensify bearish pressure. The pair's performance also reflects broader USD strength against safe-haven currencies, which is critical for Gulf investors with exposure to cross-currency swaps. MENA investors should watch for central bank policy signals, particularly the Bank of Japan's stance on Yen intervention, and the U.S. Federal Reserve's rate trajectory. Key levels to monitor include the 157.96 resistance and 155.52 support. A breakout above 157.96 could target 159.44, while a breakdown may test 154.00. Technical indicators like the RSI and MACD will provide additional confirmation for trade decisions.
