USD/JPY Price Forecast: Remains above 159.50 amid persistent bullish bias

USD/JPY edges lower after four days of losses, trading around 159.60 during the Asian hours on Monday. On the daily chart, technical analysis indicates a persistent bullish bias as the pair remains within the ascending channel pattern.

The near-term bias is bullish as the USD/JPY pair holds well above the rising 50-day Exponential Moving Average (EMA) and extends the rebound that followed the mid-month pullback. The nine-day EMA tracks just below spot and has reasserted itself as dynamic support, underscoring persistent buying interest on shallow dips. The 14-day Relative Strength Index (RSI) sits in the high 60s, confirming strong upside momentum without yet registering extreme overbought conditions.

The USD/JPY pair tests the 159.75, the highest since July 2024, reached on March 13, followed by the upper boundary of the ascending channel around 161.30. A break above the channel would lead the pair to hit the all-time high of 162.00, recorded in July 2024.

The initial support lies at the lower boundary of the ascending channel at the nine-day EMA at 158.55. Further declines below this confluence support zone would weaken short-term price momentum and expose the medium-term average at 156.44.

(The technical analysis of this story was written with the help of an AI tool.)