USDJPY Tests EMA89 as Buyers Seek BreakoutUSD/JPYOANDA:USDJPYDomicChainaUSDJPY has returned to the 157.90 area and continues to test the EMA89 zone, which is currently acting as an important dynamic resistance after the previous bearish structure was formed. What I’m watching closely is that although buyers have pushed the pair higher over the past several sessions, USDJPY still has not managed to break clearly above EMA89. This suggests that medium-term selling pressure has not completely disappeared, especially as the Japanese yen continues to receive some support from safe-haven demand and expectations that the Bank of Japan may continue normalizing monetary policy. The key area I’m monitoring now is 158.00 – 158.30. If USDJPY successfully breaks above this zone and closes an H4 candle above EMA89, I believe there is a strong chance the pair could extend its recovery toward 159.00, with 160.00 becoming the next major target. From a fundamental perspective, the US dollar remains strongly supported after both US CPI and PPI data came in hotter than expected. Persistent inflation has led markets to almost price out the possibility of a Fed rate cut this year, while keeping US Treasury yields elevated. This is a direct short-term supportive factor for USDJPY. However, the market is also closely watching the possibility of further intervention from Japan’s Ministry of Finance if the yen weakens too quickly. Previous sharp and unusual drops in USDJPY showed fairly clear signs of Japanese intervention aimed at limiting further depreciation of the JPY.