USD/JPY Maintains Bullish Momentum Above 159.50

The USD/JPY pair continues to exhibit a strong bullish bias, trading around 159.60 in Asian hours on Monday after edging slightly lower following four consecutive days of gains. It recently tested highs near 159.75—the strongest level since July 2024—while staying firmly within an ascending channel pattern on the daily chart. The pair holds well above the rising 50-day EMA, with the nine-day EMA around 158.55 providing dynamic support and reinforcing buying interest on pullbacks. The 14-day RSI remains in the high 60s, indicating robust upside momentum without reaching extreme overbought territory. A sustained break above the channel's upper boundary near 161.30 could propel the pair toward its all-time high of 162.00 from July 2024, while initial support lies at the channel's lower edge and nine-day EMA confluence at 158.55; a breach below this zone might weaken momentum and target the medium-term average near 156.44.

Japan's Nikkei share average slid for a third straight day on Monday as the Middle East crisis threatened longer-term damage to the economy through higher energy prices and a weaker yen. The benchmark Nikkei 225 Index fell 1.3% to 53,138.42 as of the midday break. The broader Topix slid 0.7% to 3,602.71.