Following form a recovery from 155.000 price zone FX pair has initially rejected 160.500 price.
Elevated Volatility Levels Should be considered as a primary scenario taking in fundamental data releases from Japan and Interest rate decision as well. Consensus expectation is that a hike should follow from BoJ.
USD/JPY hourly chart analysis
USD/JPY is trading in a highly constructive ascending
channel, currently consolidating at 159.736 right against the upper trendline
resistance and the 159.800 barrier. This tight, intra-day consolidation is
backed by a rising 20-period SMA at 159.663 acting as immediate dynamic support
and an elevated RSI of 67.251 that signals robust bullish momentum. A
decisive hourly break above this channel ceiling will likely trigger a rapid
extension into the critical 160.000 psychological milestone, while any temporary
rejection at this upper boundary should keep pullbacks shallow and
well-supported near the mid-channel structural zone around 159.400.
Hourly Chart
USD/JPY daily chart analysis
As stated previously, central bank interest rate decisions serve as the primary catalyst for the anticipated expansion in volatility.
USD/JPY sentiment is primarily bearish.