USD/JPY edged lower at the European open, easing towards 162.00 and printing a run of lower highs and higher lows that outlines a triangle pattern. US releases this week reduced expectations of imminent Federal Reserve rate cuts, leaving the Dollar softer against major peers. June PPI unexpectedly contracted on Wednesday, complementing Tuesday’s consumer inflation data and reinforcing the view that policy will be left unchanged at the July meeting.
Technical Analysis and Key Levels
The pair was trading at 162.16, with the four-hour RSI (14) hovering near 50, while MACD remained slightly negative. On the downside, the triangle base sits at 161.90; a break would expose the 10 July low around 161.30 and the pattern’s bearish objective at 160.49, which aligns with the 3 July low. Resistance is clustered between 162.40 and 162.50, matching the triangle top and the 13 and 15 July highs, before the 40-year high at 162.84; beyond that, the 127.2% Fibonacci retracement level is 163.50.
