The Japanese yen has reached a historic 40-year low, with USD/JPY advancing toward the 162.500 price zone.
Volatility is expected to increase on Wednesday and Thursday as upcoming U.S. dollar-related events and economic data could drive stronger price movements across the FX market.
USD/JPY Daily chart analysis
The USD/JPY daily chart indicates a strong short-term bullish trend, with price consistently trading above the upward-sloping 20-period SMA, reflecting sustained buying momentum and positive market sentiment. The pair has maintained a pattern of higher highs and higher lows, confirming the continuation of the current uptrend. Price is currently trading around 162.21, having broken above the 160.80 resistance level, which now acts as immediate support. The next major resistance is located near 165.00, and a decisive breakout above this level could pave the way for further gains. The recent series of bullish candlesticks shows steady buying pressure with only shallow pullbacks, indicating that buyers remain firmly in control.
Daily Chart
USD/JPY Monthly chart analysis
The USD/JPY monthly chart shows a strong long-term bullish trend, with price trading well above the upward-sloping 12-period SMA, indicating sustained buying momentum. The market continues to form higher highs and higher lows, reinforcing the positive trend structure. After breaking above the key resistance zone around 160.00–161.00, the pair is now approaching the next major resistance between 163.00 and 165.00, with a successful breakout potentially opening the way toward 170.00. Immediate support lies at 160.00–161.00, followed by the 12-period SMA around 154.00–155.00, while stronger long-term support is located near 149.00–150.00. Recent monthly candlesticks remain predominantly bullish without any significant bearish reversal patterns, suggesting buyers are still in control. Although the overall outlook remains positive, the pair appears somewhat extended after several consecutive bullish months, making a period of consolidation or a pullback toward the 154.00–156.00 area possible before another upward move.