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USD/JPY eyes break toward 162.00

USD/JPY continues to trade within a well-defined ascending channel on the higher timeframe, maintaining a clear bullish structure. Price has been consistently printing higher highs and higher lows, suggesting that buyers remain in control overall.

The key level to watch sits just above at 162.00, a major resistance zone that has previously capped upside moves. With price now approaching this area again, the market is setting up for a potential breakout scenario.

Zooming into the lower timeframe, price action reveals a tight triangle consolidation, signalling compression and indecision in the short term. This kind of structure often precedes a volatility expansion.

With the broader trend still pointing higher, the bias leans toward an upside breakout. A clean break and hold above the triangle resistance could trigger momentum, opening the path toward the 162.00 resistance zone.

Key takeaway

USD/JPY is coiling within a triangle inside a broader uptrend. If buyers step in and break the structure, the next logical target sits at 162.00. Until then, expect continued compression—but not for long

Author

Zorrays Junaid

Zorrays Junaid

Alchemy Markets

Zorrays Junaid has extensive combined experience in the financial markets as a portfolio manager and trading coach. More recently, he is an Analyst with Alchemy Markets, and has contributed to DailyFX and Elliott Wave Forecast in the past.

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