USDJPY Forecast: Could a Hawkish Fed Trigger a Breakout To 180?U.S. Dollar / Japanese YenFOREXCOM:USDJPYFOREXcomUSDJPY Challenges the 161.30–163 Resistance Zone From a weekly perspective, USDJPY has maintained a bullish structure since 2022, respecting the boundaries of a long-term ascending channel while simultaneously trading within a shorter-term one-year rising channel. These two structures continue to define the pair's directional bias. USDJPY is now challenging the key psychological and multi-decade resistance zone between 161.30 and 163, a region that has repeatedly capped advances over the past several decades. Bullish Scenario – Breakout Above 161.30 A sustained breakout above 161.30 could open the door toward 163.20, representing both the midpoint of the ascending channel and a major resistance zone that capped gains in 2024. A successful break above this region would expose the upper boundary of the channel near: 166.00 - 168.00 Beyond that, longer-term projections point toward the 174–180 region, levels not seen in decades. Such a move would represent a major continuation of the structural bull market that has driven USDJPY higher since 2022. However, the probability of direct or verbal intervention from the Bank of Japan is likely to increase significantly as USDJPY approaches those levels. In addition, momentum indicators are already showing signs of bearish divergence against price action, suggesting that upside momentum may begin to slow, unless the readings point higher. Bearish Scenario – Breakdown Below 158 The lower boundary of the one-year ascending channel remains the most important support zone to monitor. A break below 158.00 and the lower boundary of the rising channel would increase the risk of a deeper corrective move toward: 155.00 - previous support 152.00 - yearly low A break below these levels would expose the long-term ascending channel support that has guided price action since 2022, currently near 147.00. While the broader trend remains bullish, traders should remain alert to the possibility of corrective moves as the pair approaches historically significant resistance levels. - Razan Hilal