USD/JPY is trading at 159.72 (+0.05%) as of June 02, 2026, during the Asian session, extending its gains for the day. The pair is currently trading above its 20-day and 50-day simple moving averages at 158.44 and 158.83, respectively, indicating a prevailing uptrend. The relative strength index (RSI) stands at 83.3, signaling that USD/JPY is in overbought territory, which may suggest a potential pullback. However, the average true range (ATR) of 0.51 indicates relatively contained daily volatility.

The current rate is above the pivot level at 159.49, with the first resistance level (R1) at 159.61 already breached, and the pair is now testing the day's high near 159.73. The first support level (S1) is positioned at 159.23. Given the overbought RSI reading, a retreat towards S1 or even lower is possible, but the overall trend remains bullish as long as the rate stays above the SMAs.

The market may be underpricing the potential for a correction due to the overbought condition. A break below S1 at 159.23 could confirm a near-term reversal, while a sustained move above the day's high could signal further upside. The next catalyst for USD/JPY will be the upcoming US non-farm payroll data, which could either validate the current uptrend or trigger a correction.