USD/JPY extended its gains, supported by rising US yields and a strengthening dollar. The pair broke above 148.30. A confirmed breakout above 151 could send USD/JPY toward 153. The short-term inverted head and shoulders pattern signals bullish momentum.
The weaker euro and pound added fuel to the dollar’s strength. The euro slipped 3% in July, last trading near $1.1422. Sterling fell to $1.3248, down 3.5% for the month. Both currencies struggled against the backdrop of US rate stability and growth resilience.
In equities, US stock indexes lost steam as higher yields dampened sentiment. The Dow Jones 30 dropped 0.4%, while the S&P 500 dipped slightly. Traders shifted focus from risk assets to the US dollar, driving further strength in the greenback.
The 4-hour chart for USD/JPY shows that the pair has broken above 148.30 and is approaching the 151 level, supported by continued strength in the US Dollar Index. However, a confirmed break above 151 is needed for the pair to extend its upside. The formation of an inverted head and shoulders pattern in the short term suggests building positive momentum within a neutral zone. Despite this, the pair remains in consolidation and has yet to confirm a decisive breakout.
