USD/JPY Price Forecast: Bulls await range breakout above 160.00 amid intervention fears
Looking at the 4-hour chart, the pair settled above the 159.00 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). Besides, the pair cleared a key bearish trend line with resistance at 159.35.
So far – the Fibonacci support at 97.94 has held the lows in the USD. Earlier in the month I highlighted this zone as a spot of support potential for the Greenback as this was the resistance side of the ascending triangle that had formed into the March open.
With just a few days left before the end of the trading week, USD/JPY price action continues to show no meaningful directional changes in the short term. Over the past two sessions, the pair has posted an average move of around 0.1%, suggesting that price action has not been able to establish a clear trend.
The Currency pair is known for its erratic price action, highly affected by movements in rates, global trade, and inflation, as well as regional and geopolitical developments, all of which have been severely affected since the beginning of the US-Iran conflict.
USD/JPY Technical Analysis: The USD/JPY pair stalls after experiencing massive geopolitical swings, consolidating as market participants weigh energy-driven inflation against a hesitant Bank of Japan. As traders await tonight's CPI data and a pivotal weekend of diplomatic negotiations, a clear directional breakout for the Yen hinges on a resolution to the Middle East conflict.
As much noise as we have in the interest rate markets, it isn't a surprise that with rising rates, we have a rising dollar as well.
USD/JPY Price Forecast: Scope for further upside towards 160.50 improves amid triangle breakout
The pair managed again to hit another correction while still facing the support zone of 157.25-65, which could hold prices inside this trading zone toward resistances 160.20 or 161.95. Above 161.95 the market could enter a new uptrend wave with first target toward 163.80.
USD/JPY steadies ahead of Japan CPI and US PMIs
It was a rough first two weeks of Q2 for the US Dollar, which fast went from bullish breakout potential to oversold on the four-hour chart. This fed rallies in both EUR/USD and GBP/USD but, notably, USD/JPY held up fairly well and for the past few weeks has held within a range-bound formation as buyers have continued to show support around prior resistance.
USD/JPY steadies as Middle East tensions offset softer yields