USD/JPY is trading at 163.71 (-0.08%) as of July 24, 2026, during the European session, near the upper end of its 52-week range of 152.45 – 163.70. The pair's current level represents a continuation of its uptrend, as it remains above both the 20-day and 50-day simple moving averages at 162.35 and 160.98, respectively. The Relative Strength Index (RSI) stands at 74.8, indicating the pair is in overbought territory, which may suggest a potential for a pullback. However, the Average True Range (ATR) of 0.64 implies relatively contained daily volatility.

The current price action is consolidating around key technical levels. The pivot point is at 163.35, with the first resistance level (R1) at 163.71, which the pair is currently testing, and the first support level (S1) at 162.72. The fact that USD/JPY is trading just above the pivot and at R1 suggests that the market is testing the upper boundary of its recent range.

Given the overbought RSI reading, the market may be underpricing the likelihood of a near-term correction. A break below the S1 support at 162.72 could confirm this view, while a sustained move above R1 might indicate further upside potential. The forward catalyst to watch is the US initial jobless claims data, which could influence USD/JPY's direction by impacting market sentiment on the US economy.