USDJPY is currently in a corrective phase, retesting the previously broken downtrend boundary. The pair is attempting to establish a breakout amid broader dollar correction dynamics.The U.S. dollar remains under pressure due to economic and geopolitical factors, alongside persistent inflation concerns. Given this backdrop, the dollar index may experience a deeper correction, especially if expectations for prolonged interest rate adjustments continue to weigh on market sentiment.
Despite an earlier attempt to breach the downtrend resistance, the currency pair requires further confirmation to signal a potential trend reversal.
Key Levels to Watch:
Support: 148.92, 148.21
Resistance: 150.16, 150.95
A sustained hold above the 148.92 - 149.5 range could indicate growing bullish momentum, potentially leading to a move toward the 150.16 resistance level. A breakout and consolidation above this zone would provide stronger confirmation of a trend shift.
