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USD/JPY Breakout Watch: Bulls Target Higher Ground

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Aayush Jindal

Key Highlights

  • USD/JPY started a fresh increase above 162.00 and 162.20.
  • A major bullish trend line is forming with support at 161.90 on the 4-hour chart.
  • EUR/USD again failed to gain strength for a move above 1.1475.
  • GBP/USD rallied above 1.3450 before it faced sellers near 1.3560.

USD/JPY Technical Analysis

The US Dollar remained supported above 161.50 against the Japanese Yen. USD/JPY gained strength for a fresh move above 162.00.

Looking at the 4-hour chart, the pair surpassed the 61.8% Fibonacci retracement level of the downward move from the 162.70 swing high to the 161.28 low. The pair even settled above 162.20, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).

On the upside, the pair could face strong resistance at 162.70. The next major resistance might be 162.85. A close above 162.85 could start a steady increase. In the stated case, the bulls could aim for a move to 163.50.

If there is a downside correction, the pair might find support near 162.00. There is also a major bullish trend line forming with support at 161.90.

The first major support could be near 161.30 and the 200 simple moving average (green, 4-hour). A downside break and close below 161.30 might send the pair toward 161.00. Any more losses could open the doors for a test of 160.00.

Looking at EUR/USD, the pair attempted a fresh increase, but the bears are still active near the 1.1475 resistance zone.

Upcoming Key Economic Events:

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  • US Export Price Index for June 2026 (MoM) – Forecast -0.4%, versus +1.3% previous.
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  • Michigan Consumer Sentiment Index for July 2026 (Prelim) – Forecast 51.0, versus 49.5 previous.
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