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The USD/JPY pair is currently trading with a neutral intraday bias following a recent pullback. Key technical levels include daily pivots at 159.23 (S1), 159.49 (P), and 160.00 (R1). A move above 159.74 could target a retest of 161.94, with a firm break confirming a resumption of the larger uptrend. If this occurs, the 61.8% Fibonacci projection from 139.87 to 159.44 suggests a potential target of 164.34. However, bearish divergence signals caution for traders. For forex traders, the USD/JPY's performance is critical due to its sensitivity to U.S. and Japanese monetary policy. The pair's movement above key resistance levels could attract long positions, while bearish divergence may prompt short-term hedging strategies. The presence of multiple technical indicators (pivots, Fibonacci projections) provides clear entry and exit points for active traders. Market participants should monitor the 159.74 level as a near-term catalyst. A sustained break above this level could shift the bias to bullish, while a failure to hold above 159.23 might trigger a deeper correction. Broader macroeconomic data from the Fed and Bank of Japan will also influence longer-term positioning.
