• • Boxed Consolidation: The pair has been oscillating largely within a defined channel between 158.05 and 159.70. 
  • Moving Average Resistance: The price action is currently capped just below its 50-period moving average on the 4-hour chart (sitting around 159.18). A breakout above this level is required to shift short-term momentum back to the bulls. 
  • Key Technical Levels:
    • • Resistance Levels: 159.70 (H4 hurdle) ➡️ 160.00 (Psychological zone/100-period MA) ➡️ 160.85.
      • Support Levels: 158.05 (Immediate baseline) ➡️ 156.95 (Downtrend target) ➡️ 155.20. 

• US Treasury Interventions: The US Dollar experienced downward pressure after the US Treasury announced it would double its long-term bond buyback volume to stabilize rising borrowing costs. This compressed long-term yields, temporarily decreasing the incentive to buy the Greenback over the Yen. 
• BoJ Rate Speculation: Japan’s National CPI acceleration and stable Q2 GDP growth (0.3%) have strengthened investor expectations for a potential Bank of Japan policy normalization or interest rate hike, keeping a lid on extensive USD/JPY rallies

USD/JPY rebounds as merchants deal with rising Treasury yields. The yield of 2-year Treasuries climbed in direction of the 4.20% degree, whereas the yield of 10-year Treasrueis settled above 4.70%.

Treasury yields are shifting greater regardless of Bessent’s efforts to push them decrease as bond merchants stay apprehensive about long-term charge outlook.

If USD/JPY climbs above the 50 MA at 159.18, it is going to transfer in direction of the closest resistance degree at 159.50 – 160.00.

A transfer above 160.00 will push USD/JPY in direction of the 162.00 degree. It stays to be seen whether or not BoJ is able to intervene in case USD/JPY climbs above the psychologically essential 160.00 degree.

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