While the FX fireworks have been elsewhere of late, USD/JPY remains structurally clean, and as I looked at in last week's webinar I think the pair is one of the more attractive backdrops for items of USD-strength. That said, the market is not without its own drama as the 160.00 level that evoked comments from both Katayama in Japan and Bessent in the US sits just above current resistance at the 159.00 handle.
Looting and rioting in France put pressure on the European currency.
USDJPY added more value above 157.85 as the drop pressure still overshadows the market as traders expect an intervention from the Bank of Japan. Intraday prices show resistances at 159.00 and 160.00, while a drop wave could hit the market toward 156.40 and 153.90.
USDJPY moving lower The Yen (USDJPY) bounced back against the dollar as the pair looks to close the weekend gap. Resistance at 158.30 indicates renewed selling pressure and could lead to a bearish continuation.
USD/JPY is going nowhere fast, showing little response to renewed volatility in equity markets or a sharp decline in US Treasury yields, leaving the pair range-bound as it has been for weeks. With the Fed in blackout ahead of its October meeting and next week's economic calendar devoid of major risk events, it's hard to see what might break the deadlock.
When the fundamental backdrop diverges from price action, we have a possible turn, and that's what the past week has been for the US Dollar. While inflation remains high in the US and the Fed is on track to hike rates again by the end of the year, the US Dollar sold off and put in a bearish engulfing candlestick on the weekly chart even despite strong CPI and PPI prints.
The strong rally in the oil markets provided support to the American currency.
USD/JPY has been trading in a narrow range between low 157s and 159 and traders have drawn a line in the sand at 160. But could this change?
USDJPY managed to add more bonus above 157.85 while drop pressure still overshadow the market as traders expect an intervention from BOJ anytime Intraday showing resistances at 159.00 and 160.00 while a drop wave may hit the market toward 156.40 and 153.90 Above 160.00 more advance is likely with resistances at 160.90 and 161.95 […]
USD/JPY Price Forecast: 157.50 pivotal support holds after Warsh's remarks
Short-term price action around the Japanese yen has started to show some relative improvement over recent sessions. This can be seen in the recent performance of USD/JPY, which has now recorded three consecutive daily declines in favor of the Japanese currency, resulting in a depreciation of roughly 0.35% over the period.
The sell-off in the AI sector pushed Treasury yields lower and put pressure on the American currency.