USDJPY currency pair recently reversed down from the strong resistance level 160.50 (which has been reversing the price from the end of March).
The American currency moves higher as PPI increased by 1.1% in May.
Our previous outlook for USDJPY still stands, as the pair continues to test the 160.20–160.60 resistance zone. Traders are closely watching this area, as the last time the market reached it, the Bank of Japan warned about possible intervention to support the yen.
USD/JPY rose to 160.52 on Thursday, marking its highest level since July 2024. The Japanese yen remains under significant pressure despite a notable acceleration in Japan's producer price inflation.
USD/JPY Price Forecast: US Dollar holds above 160 as RSI nears overbought, BoJ risk looms
The American currency is losing ground as Inflation Rate increased from 3.8% to 4.2%.
The market enters today's US CPI print, facing building macro headwinds and energy shocks stemming from the ongoing Middle East conflict. Following a complete evaporation of Fed rate-cut bets for 2026, the market is aggressively positioned for a bear-flattening yield curve environment under Fed Chair Kevin Warsh.
Our previous outlook for USDJPY still stands, as the pair continues to test the 160.20–160.60 resistance zone. Traders are closely watching this area, as the last time the market reached it, the Bank of Japan warned about possible intervention to support the yen.
USDJPY remains firm and holds above 160 level for the third consecutive day, despite repeated warnings from Japan's officials about intervention.
Markets have all but settled on the Bank of Japan raising rates by 25 basis points to 1% next week, with overnight index swaps pricing around 50 basis points of tightening in total this year. But the real question is what the BOJ decides to do with the pace of quantitative tightening after Nikkei reported policymakers are considering slowing or even pausing the runoff of their bond holdings.
A new trading week begins, and one of the factors that continues to stand out is the neutrality of the Japanese yen. Japan's.
The American currency managed to move away from session lows.