Gold prices remain under pressure as US dollar strength weighs on the metal's fragile recovery. A cautious outlook persists for gold below the 4,360 resistance level and beneath a multi-month trendline extending from the March 2026 highs.
Our previous outlook for USDJPY still stands, as the pair has gradually started testing the 160.20–160.60 resistance zone. Traders are closely watching the 160.20–160.60 area, as the last time the market reached this zone, the Bank of Japan signaled the possibility of intervention to support the yen.
The Japanese yen crashed to an important level that triggered a massive Bank of Japan (BoJ) intervention in April. The USD/JPY exchange rate rose to the crucial resistance at 160, its highest point since April 30th this year, and 3.40% from its lowest point in May.
Strong U.S. jobs data, rising Treasury yields, and BOJ policy risks keep USD/JPY near 160 as markets watch the next interest rate decision.
The yen heads into the new week on the back foot, with USD/JPY trading north of 160 despite markets pricing almost two full Bank of Japan rate hikes by year-end. Add in the threat of intervention from Japanese authorities and it's fair to ask why the yen isn't performing better.
The American currency tests multi-week highs as traders bet on hawkish Fed.
Dollar strengthened broadly in early US session after a much stronger-than-expected US employment report reinforced confidence in the resilience of the labor market. Non-farm payrolls rose 172k in May, nearly double expectations, while April's gain was revised sharply higher to 179k.
160.00: USD/JPY back near intervention territory after upbeat US jobs report
USD/JPY Price Forecast: Consolidates near 160.00 as US NFP takes centre stage
Looking at the 1-hour chart, the pair gained strength for a move toward 160.00. A high was formed at 160.04, and the pair is now consolidating gains near the 23.6% Fib retracement level of the upward move from the 159.54 swing low to the 160.04 high.
USD/JPY tests 160 while AUD/JPY struggles near resistance. NFP could provide the catalyst for greater volatility across yen c.
It has been five weeks since the MOF first intervened, sending USD/JPY more than 500 pips lower. A second shot was fired just four days later, although it only generated a 300-pip decline.