USD/JPY snaps four-session winning streak, retreats to 159.00 region

💡 DMK Insight

USD/JPY’s 0.4% pullback to the 159.00 level could signal a shift in momentum. After a four-session winning streak, this retracement might indicate profit-taking or a broader market correction. Traders should keep an eye on key support levels around 158.50 and resistance at 160.00. If the pair fails to hold above 159.00, we could see further declines, especially if economic indicators from the U.S. or Japan shift sentiment. The recent strength in USD/JPY was likely driven by rising U.S. yields, so any change in that dynamic could amplify volatility. Watch for upcoming economic data releases that could impact interest rate expectations, as they will be crucial for determining the next move in this pair.