USD/JPY Faces Resistance Near 162.40 Amid Geopolitical Tensions

The USD/JPY pair is maintaining a bullish trend for the fourth consecutive day, though it currently faces a significant technical barrier at the 162.40 resistance level. This upward momentum is driven by a combination of renewed safe-haven demand for the US Dollar following US strikes on Iran and continued weakness in the Japanese Yen, exacerbated by dovish remarks from Bank of Japan official Toichiro Asada regarding interest rate hikes. While technical indicators suggest the pair remains in a positive structure, traders are closely monitoring whether the price can breach this ceiling to test 40-year highs or if it will face further consolidation near current support levels.

Japan's Nikkei share average rebounded on Thursday after a three-day losing streak, as AI-related shares tracked gains in the U.S. technology sector, although higher oil prices following renewed U.S.-Iran hostilities kept investor optimism in check. The Nikkei 225 index climbed 1.4% to close at 67,743.85, trimming some gains after rising as ‌much as ?2.4% earlier. ?The broader TOPIX rose 0.4% to 4,020.37.