• USD/JPY remains close to 159.00 near immediate barrier of upper boundary of the descending channel.
• The 14-day Relative Strength Index around 55 shows buyers hold a slight edge without being overbought.
• The initial support lies at the nine-day EMA of 158.43.

USD/JPY halts its seven-day winning streak, trading around 159.00 during the European hours on Wednesday. The currency pair holds above the nine- and 50-period Exponential Moving Averages (EMAs), keeping a constructive upside bias in place after recovering from last week’s dip.

Additionally, the 14-day Relative Strength Index (RSI) sits around 55, hinting at moderate bullish momentum rather than overbought conditions as price consolidates just under the recent highs.

On the daily chart, technical analysis indicates that the pair is positioned slightly below the upper boundary, make-or-break" zone, of the descending channel pattern. A sustained break above the channel would confirm the bullish reversal, while a failure may lead to the sideways trend.

Further advances above the channel would support the USD/JPY pair to explore the region around the 22-month high of 160.73, which was recorded on April 30, followed by the all-time high of 162.00, recorded in July 2024.

On the downside, the USD/JPY pair may fall toward the primary support at the nine-day EMA of 158.43, followed by the 50-day EMA at 158.21. A break below these averages would revive the bearish bias and put downward pressure on the pair to navigate the region around the 12-week low of 155.04, recorded on May 6, followed by the lower boundary of the descending channel around 154.00.

(The technical analysis of this story was written with the help of an AI tool.)