USD/JPY Retreats After Failed Attempt at July Highs

USD/JPY has pulled back from its recent test of July highs, showing signs of exhaustion in the dollar's rally against the yen. The pair failed to sustain momentum above key resistance levels, prompting profit-taking and a modest retreat. Technical indicators suggest the upward momentum has temporarily stalled, with the pair struggling to maintain gains above critical resistance zones. The pullback reflects a combination of technical factors and cautious positioning ahead of upcoming economic data releases. Immediate support has formed at previous resistance levels, while the July highs remain the key upside target. Traders are monitoring both US economic indicators and Bank of Japan policy signals for directional cues. The near-term outlook depends on whether bulls can gather strength for another attempt at breaking July peaks or if the correction deepens toward stronger support levels.