USD/JPY is trading at 159.71 (+0.29%) as of June 01, 2026, during the European session, extending its gains for the day. The pair is currently trading above both its 20-day and 50-day simple moving averages at 158.33 and 158.81, respectively, indicating an uptrend. The relative strength index (RSI) stands at 85.3, signaling that USD/JPY is in overbought territory, which may suggest a potential for a pullback. However, the average true range (ATR) of 0.53 indicates relatively contained daily volatility.

The current rate is above the pivot level at 159.25, with the first resistance level (R1) at 159.40 and the first support level (S1) at 159.12. Given that the pair is trading near its 52-week high of 160.23, seen on other recent trading days, the proximity to this level may influence trader sentiment. The market may be underpricing the potential for a correction given the overbought RSI reading.

A break below the S1 support at 159.12 could be an early indication of a reversal, potentially targeting the 20-day SMA at 158.33. Conversely, a sustained move above R1 at 159.40 could pave the way for a test of the 52-week high at 160.23. The upcoming US non-farm payrolls data could be a key catalyst, potentially validating or invalidating the current uptrend.