USDJPY Holds Near 159 — Stability Before Breakout or Collapse?USD/JPYOANDA:USDJPYDomicChainaUSDJPY is entering a highly sensitive phase as price continues holding around the 159 area after a strong recovery rally that has lasted for more than two weeks. What stands out to me is that after the sharp collapse seen in early May, the market has absorbed almost all previous selling pressure and is now maintaining a relatively clear higher-low structure on the H4 timeframe. Buyers continue defending EMA34 effectively while price remains firmly above EMA89 — a sign that capital has not yet exited the short-term bullish trend. However, the current upside momentum is beginning to slow as the market approaches the major psychological resistance zone around 159.20 – 159.50, where strong selling pressure appeared previously. One important factor is that the US dollar remains well supported by elevated US Treasury yields, while markets have almost completely removed expectations for an early Fed rate cut. This continues giving USDJPY a medium-term advantage. On the other hand, the risk of intervention from Japanese authorities remains a major concern whenever USDJPY moves close to the 160 level. Any hawkish signal from the BOJ or Japan’s Ministry of Finance could trigger extremely aggressive selloffs similar to previous intervention phases.