## USD/JPY Closes Trading Session in an Ascending Triangle Pattern

During Monday's European session, the main currency pair USD/JPY experienced a slight pullback, ending the session at 156.74 after reaching a high of 156.90. This movement reflects a balance between two forces: upward momentum from expectations that the Fed will continue its "dovish" policy and downward pressure from positive signals from the Bank of Japan (BoJ) regarding future interest rate hikes.

### Momentum from BoJ and the Japanese Yen

Governor Kazuo Ueda made positive comments about inflation prospects and wage growth, prompting traders to reassess the likelihood that the BoJ will continue its monetary policy normalization process. His argument that "wages and prices are likely to increase together moderately" has provided positive momentum for the Japanese Yen. This is evidenced by JPY's superior strength against other currencies during the day, although the USD still maintains its position due to safe-haven demand amid recent geopolitical tensions.

### Global Factors Pressure

The US Dollar Index (DXY) remains strong near 98.60, up 0.15%, reflecting investors' safe-haven demand. Although the USD remains favored amid uncertainty, the strengthening of JPY indicates that traders are reassessing the likelihood of the BoJ taking more proactive measures.

### Technical Outlook: Ascending Triangle Pattern

From a technical perspective, USD/JPY remains above the 20-day EMA (156.26), indicating that the slight bullish trend is still in effect. The Relative Strength Index (RSI) at 55.99 is above the 50 average line, suggesting that momentum remains stable.

The upward trendline from 154.39 has become an important support level near 156.56. If the daily close falls below this level, the ascending triangle pattern will be broken, opening the possibility of a deeper correction toward the December low of 154.35.

Conversely, a clear breakout above the November high of 157.90 would complete the ascending triangle pattern, with the next target being the psychological level of 160.00, demonstrating the long-term strength of this pattern.

### Key Events This Week

Traders will pay attention to the US manufacturing ISM PMI data for December, to be released at 15:00 GMT on Monday. This data is likely to impact USD valuation and provide further evidence of the US economy's health.