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The USD/JPY pair is extending its upward momentum, driven by rising U.S. Treasury yields and higher crude oil prices. The 10-year U.S. yield climbed to 4.257%, while oil prices surged 9.72% to $8.48 per barrel. Technically, the pair is approaching key resistance levels, including the January 2025 high of 158.875 and the 2026 high of 159.447. A sustained break above these levels could target psychological barriers at 160.00 and historical resistance at 161.92. For traders, the USD/JPY's performance is critical as it reflects broader USD strength against the JPY, influenced by Fed policy and global energy markets. A breakout above 159.447 would signal strong bullish momentum, while a pullback below 158.875 could trigger short-term corrections. The pair's intraday support at the 50% retracement level (158.54) has so far held, reinforcing the bullish case. Investors should monitor U.S. inflation data and central bank statements for potential shifts in USD/JPY dynamics. For MENA traders, the yen's weakness against the dollar could impact Gulf import costs and USD-denominated assets. Key watchpoints include the 160.00 psychological level and the 161.92 historical resistance.
