I have been closely watching the USD/JPY trend recently, and it has indeed been rising over the past couple of days. On Wednesday, the rebound continued, but now it’s stuck around 159.27, with only a 0.36% increase, which feels a bit sluggish.

From a technical perspective, last week’s high was 159.65, and there’s still some distance to that level. The momentum indicators do suggest there might be another push toward the weekly high, but the problem is that Japanese authorities have been closely monitoring the forex market. If the dollar becomes too strong, they might intervene, so breaking through the 160 level seems unlikely.

I’ve also marked the support levels below. The 20-day moving average is at 158.24, which is the first line of defense. If that breaks, the daily low of 157.51 is within reach. Further down, there are moving average supports at 156.56 and 156.26. Overall, in the short term, the market is still oscillating at high levels, but the upward potential is limited, and downside risks are accumulating.