I am monitoring USD/JPY and the pair keeps rising. It has been seven consecutive days of gains, and now it’s reaching highs not seen in almost three weeks, near 159. Everything indicates that the dollar remains strong due to geopolitical uncertainties and the possibility of the Fed raising interest rates by the end of the year. Meanwhile, the yen is under pressure due to the situation in the Middle East.

Technically, the pair has a clear bullish bias above 158.55. The RSI is at 73.34, indicating an overbought condition, but the price remains steady. The next targets seem to be 159.49 and then the psychological level of 160. If it manages to break 160, there’s room up to 160.72.

The point is that momentum is losing strength, even though the price is still rising. If it falls below 158.55, the scenario will change — it could drop to 157.86 and then 157.18. For now, the path of least resistance remains upward, but keep an eye on the overbought condition.