USD/JPY hits channel resistance near 159.45 – Société Générale

💡 DMK Insight

USD/JPY’s recent resistance at 159.45 is a critical level to watch as traders assess the next move. The pair has been trending upward within an ascending channel, but hitting this resistance suggests a potential short-term pullback. If it does retreat, the 50-day moving average around 156.00-156.60 could serve as a solid support level. Traders should monitor how price reacts at these levels, as a bounce off the moving average could signal a continuation of the bullish trend, while a break below could indicate a shift in momentum. Given the current market sentiment, which remains cautious amid broader economic indicators, this setup could also influence correlated assets like JPY crosses. Keep an eye on any economic data releases that might impact the USD, as they could add volatility to this pair. In the coming days, watch for price action around 156.00-156.60 for potential buying opportunities, but be prepared for increased volatility if resistance at 159.45 holds firm.