USD/JPY is expected to test the ¥160 level, a roughly 2.5-month high, in this morning's trading, with the factors behind the rise from the previous day and resistance levels the market's focus.
The morning forecast range for USD/JPY is ¥159.000 to ¥160.600, and attention is focused on whether it will move above the psychologically important ¥160 level.
The previous day's daily candle rose about 0.7%. Although trading was quiet due to Veterans Day in the United States, rising expectations for a Federal Reserve rate hike following the US October CPI results supported dollar strength. USD/JPY rose to around ¥159.94.
Around ¥160.39 is being watched as the upside target, and in the short term attention is focused on whether the pair can break above this level. On the other hand, profit-taking selling may emerge after the rise of nearly ¥2, and there may be periods when further upside is constrained.