USD/JPY is pushing back towards a key resistance zone
USD/JPY has been climbing back above 159 and is now approaching 159.50, an area that acted as both support and resistance from mid-April before Japan's intervention at the end of that month. That makes the level important not just technically, but also as a gauge of whether the market is prepared to challenge the same zone again.
If the pair can break convincingly above 159.50, the next upside target looks closer to 160.50, which would take USD/JPY back towards the highs reached before Japanese officials stepped in. The chart setup therefore looks less like a random rebound and more like a test of whether yen weakness is starting to rebuild momentum.
Momentum is firming, but the bigger signal is still the price level
There are signs that momentum is improving alongside the move. The RSI is drifting towards 60, which suggests the pair may still have room to accelerate before becoming technically overstretched. That does not guarantee a breakout, but it does support the idea that bullish pressure is building rather than fading.
For traders, though, the main issue remains the resistance itself. A stronger RSI can reinforce a move higher, but the real signal would come from USD/JPY clearing 159.50 and holding above it. Without that, the pair may still be vulnerable to another pause or reversal near a level that has already attracted policy attention before.
