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The USD/JPY pair has retreated slightly following four consecutive days of losses, currently trading near 159.60 during Asian trading hours. Despite the recent pullback, technical analysis on the daily chart suggests a sustained bullish bias, with the currency pair remaining within an ascending channel pattern. Key support at 159.50 remains intact, reinforcing the likelihood of further gains if buyers defend this level. For traders, the persistence of the ascending channel and the pair’s ability to hold above critical support levels signal continued momentum in favor of the dollar against the yen. A break above 160.00 could trigger renewed bullish momentum, while a failure to hold 159.50 might invite short-term corrections. The Japanese Bank of Japan’s policy stance and U.S. Federal Reserve rate expectations will remain pivotal in shaping near-term direction. The USD/JPY’s trajectory is closely watched by forex traders globally, with the current technical setup offering a clear framework for both long and short-term strategies. Investors should monitor upcoming central bank decisions and economic data releases for potential catalysts. The pair’s performance will also influence cross-currency flows in the broader forex market.
