The US Dollar to Yen (USD/JPY) exchange rate remains close to multi-decade highs and is trading around 159.90 after repeatedly testing the 160 level over recent weeks. Rabobank expects the Japanese Yen to regain some ground over the medium term and has adjusted its six-month USD/JPY forecast to 155.00, although it stresses that any.
The US dollar is holding on to its recently gained ground following a series of strong macroeconomic releases and a rise in US Treasury yields. Additional support for the greenback comes from resilient inflation readings, expectations that the Federal Reserve will maintain a restrictive policy stance, and cautious investor sentiment ahead of the release of the preliminary ADP employment report.
USD/JPY Price Forecast: Bulls turn cautious near 160.00 amid rising intervention risk
The better-than-expected JOLTs Job Openings report provided support to the American currency.
Recent sessions have been difficult for the Japanese yen, as USD/JPY has gained more than 0.5% over the last six sessions, mo.
USD/JPY approaches 160.00 as Yen struggles despite softer US Dollar
Our previous outlook for USDJPY still stands as the pair slowly marches towards the resistance zone at 160.20-60. Traders are watching the resistance zone of 160.20-60 as the last time the market was here, the BoJ threatened to intervention to support the Yen.
While no one knows when a truce in the Gulf will truly hold, allowing energy supplies to transit the Strait of Hormuz freely, the uncertainty continues to expose a major vulnerability for Japan. As a significant net energy importer, higher prices threaten to worsen both its terms of trade and current account position, creating a headwind for the yen.
The strong rally in the oil markets provided support to the American currency.
Japanese Yen slips as Middle East tensions lift USD/JPY ahead data
USD/JPY continued its advance on Monday, reaching 159.46. The Japanese yen therefore remains under pressure near the key 160.00 level against the US dollar.
For a few days in early May, it looked as though Japan had successfully pushed back against Yen weakness. The Ministry of Finance has now confirmed that impression came at a hefty cost.