• USD/JPY climbs to 160.89, up 0.08%, buoyed by strong US data and rising Treasury yields.
• Technicals show buyer momentum; RSI overbought but not extreme.
• Resistance levels: 161.00, 162.00, 164.87 (Nov 1986 high), 178 (Apr 1986 high).
• Support found at 159.19 (Tenkan-Sen), 158.75 (June 24 low), 158.65 (Senkou Span A), 157.91 (Kijun-Sen).

The USD/JPY extended its gains on Friday and is set to end the week with more than 0.50% gains after US economic data spurred a jump in the US Treasury, despite increasing speculations that the US central bank could cut rates in 2024. The USD/JPY trades at 160.89, up 0.08%.

USD/JPY Price Analysis: Technical analysis

The USD/JPY uptrend remains intact, though traders are cautious after reclaiming the psychological 160.00 level, which is viewed as the first line of defense for Japanese authorities to intervene in the FX markets. Despite this, the pair has continued to advance steadily, increasing intervention risks.

Momentum favors buyers, even though the Relative Strength Index (RSI) is overbought. However, due to the strength of the uptrend, many technicians consider 80 as the threshold for "extreme" overextended conditions.

The USD/JPY first resistance levels would be the psychological marks of 161.00, 162.00, and so forth, leading up to the November 1986 high of 164.87. Beyond that, the next significant resistance is the April 1986 high of 178.

Conversely, if USD/JPY drops below 160.00, the first support would be the Tenkan-Sen at 159.19, followed by the June 24 low of 158.75. Once those levels are cleared, the next support is the Senkou Span A at 158.65, followed by the Kijun-Sen at 157.91