The USD/JPY currency pair has remained near a four-decade high, with spot prices sliding to the 162.00 level during the first half of the European session on Tuesday, as traders await key US consumer inflation data and Federal Reserve official Kevin Warsh's congressional testimony [1]. Intervention risks have lent some support to the Japanese Yen (JPY), acting as a headwind for further USD/JPY gains, especially amid a softer US Dollar. However, the persistently wide interest rate gap between Japan and other major economies, including the US, continues to undermine the JPY [1].
According to United Overseas Bank analysts, USD/JPY rebounded from a low of 161.26 to trade between 161.55 and 162.48, closing firmly at 162.42 (+0.45%) [2]. They see scope for a test of 162.70 in the near term, while keeping the major resistance at 163.00 out of view. Support levels are identified at 162.20 and 162.00, with the pair expected to remain in a broad 160.60–163.00 range over the coming weeks. The medium-term uptrend is considered intact as long as the pair stays above the 21-day EMA [2].
Technical analysis from FXStreet notes that USD/JPY is consolidating within a symmetrical triangle on the 4-hour chart, which may represent a bullish consolidation phase following a strong rally from the May swing low [1]. Momentum indicators are relatively muted, with the RSI near a neutral 52 and the MACD fractionally positive, suggesting a cautious upside tone rather than an impulsive rally. A breakout above the triangle resistance near 162.55–162.60 would be needed to confirm further appreciation, while a break below the 200-period EMA near 161.15 could signal a deeper corrective phase [1].
The Japanese Yen was the strongest against the US Dollar among major currencies today, with the USD/JPY pair showing a -0.15% change [1]. Despite this, both sources agree that the broader technical and fundamental setup still favors the USD/JPY uptrend, with analysts expecting the pair to remain within a defined range in the near term [1][2].
CONCLUSION
USD/JPY remains near multi-decade highs, consolidating within a broad range as traders await US CPI data and monitor intervention risks. Technical and analyst views suggest the uptrend is intact, with resistance at 162.70 and support at 162.00, and a broader range of 160.60–163.00 expected in the coming weeks. Market sentiment is cautiously bullish, with no major breakout anticipated until key resistance levels are surpassed.