FX.co ★ USD/JPY

USDJPY H1 Chart Analysis: The USD/JPY broke through the neckline of a bullish inverse head-and-shoulders chart pattern that had been in place for two days early on Tuesday, setting a new intraday high of 163.751. It had dropped to 163.751 by the time of publication. The inverse H&S confirmation and the positive, non-overbought RSI make the USD/JPY recovery from the lowest levels since late May 2026 more significant (14). Before attaining the fictitious aim of 163.751, buyers of the Yen pair anticipate moving towards the 163.751 round figure. The USD/JPY pair had trouble regaining the important barrier of 163.751 in the early Asian session. As investors await the Bank of Japan's (BoJ) first monetary policy announcement for 2026, the asset has dropped below 163.751 and is still erratic. After a long weekend, the US markets will resume trading on Tuesday, so the volatility will persist. Because the return on US Treasury bonds has risen to 3.53%, market participants might be more cautious. The 200-HMA level close to 163.751 will be the area of attention if the RSI line does not test the USD/JPY bulls as it approaches overbought territory around 163.751. Another filter to the north could be the round figure 163.751. However, the USD/JPY pair's immediate decline before the 50-HMA level near 163.751 is constrained by the resistance-turned-support line of the previously mentioned inverse H&S, which was at 163.751 at the time of writing. If the Yen pair continues to decline after hitting 163.751, the market will closely monitor the monthly low at 163.751 and the bottom for May 2026 near 163.751. Overall, even though the upward potential is limited, the USD/JPY has a possibility to keep rising.