**BREAKING: USD/JPY Surges Toward April Highs as Key Support Level Holds**
USD/JPY has mounted a strong rebound after successfully defending a critical multi-month ascending trend line between 155.00 and 155.50, according to Societe Generale analysts. The currency pair is now challenging April’s peak levels, driven by persistent yield spread dynamics favoring the dollar over the yen.
Technical analysis indicates immediate support has established at 159.20, while upside projections target 161.20 and 162.00 in the near term. The successful defense of the 155 zone has reinforced bullish momentum, signaling continued strength in the dollar-yen relationship as interest rate differentials remain wide.
Traders are closely monitoring these levels as the pair extends its upward trajectory. The rebound confirms the resilience of the broader uptrend that has characterized USD/JPY trading in recent months, with yield spreads between US and Japanese bonds continuing to provide fundamental support for dollar strength.
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FXnCO Insight
** Traders should watch 159.20 as the critical support floor, with long positions favored toward the 161.20-162.00 targets while the yield spread advantage persists.
Source: FXStreet