Hey traders👋 As we head into early June 2026, all eyes are on one pair: USD/JPY. The market is getting pretty intense right now. The way the price is crawling toward the 160 psychological level isn't just a random technical move it’s the result of some major fundamental tension building up.
Right now, the Japanese Yen is under heavy pressure because the Bank of Japan’s monetary policy is still super dovish compared to the Federal Reserve, which is keeping interest rates high. The market is getting nervous about a potential surprise intervention from Japanese authorities. If they actually step in, we could see a massive flash crash in a matter of minutes. That’s why, as traders, we really need to keep our heads in the game, watch the fundamentals, and keep an eye on this week's economic calendar so we don't get caught off guard by crazy volatility.
Technical Breakdown: From Long Term to Short Term
The Big Picture. Looking at the weekly structure, the trend is still very much bullish. Right now, the price is fighting to test the supply area. My main support zone is sitting at 141.750 to 140.070. On the flip side, the major resistance target I’m looking at is in the 162.080 to 160.070 range.
Daily Structure
On the daily timeframe, our main demand zone is holding up strong at 152.770 to 152.045. But, to keep my positions safe, I’m keeping a close watch on the nearest support, which is hanging out around the 156.220 to 155.480 zone.
Current Action
If we zoom in to the 4H chart, the trend is still pushing up, but we’ve got a red flag. Selling pressure is starting to creep in, which you can see from those red candles over the last few hours. The price is currently chasing the resistance zone at 160.550 to 160.260.
Extra Confluence and Data
I never rely on charts alone. I always combine my technicals with Fair Value Gaps (FVG) to see where the smart money is leaving its footprints. Here is how I’m mapping out the FVG on both the daily and 4H charts.
Market sentiment is also our compass. Right now, the Technical Indicator Summary is flashing Strong Buy. But, look at the Client Sentiment Chart 72 percent of retail traders are holding Short positions. As traders, we know that when the retail crowd is heavily going against the grain, the big players often push the price the other way.
Don't sleep on the economic calendar this week. We’ve got some high impact data coming out that could spark some serious volatility, even if the charts aren't showing it yet.
My Take?
Looking at how the market is chasing that 160.550 resistance, I’m sticking to a wait and see approach for now. Even though the bullish trend is strong, that selling pressure on the 4H chart tells me we might need a retest at the nearest support before any real breakout happens.
My plan? I’m not going to force an entry at the top. I’d rather wait to see how the price reacts near the resistance or look for a setup at the 156.220 support if we get a pullback. Keep your risk management tight and don’t over leverage.
â›” Disclaimer: This article is strictly for informational and educational purposes only. It is not intended as financial advice, and I do not provide any trading signals. All investment decisions are your sole responsibility. Please ensure you conduct your own research (DYOR) before making any trades.
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