USDJPY managed to resume the advance to close from the resistance at 160.85. If prices remain below this resistance, a drop towards 159.10 and 158.00 is likely.
The US dollar reacted enthusiastically to Kevin Warsh's ‘hawkish' rhetoric, strengthening against the world's major currencies. The recent slowdown in inflation did not mislead the Fed Chair.
USD/JPY Price Forecast: US Dollar keeps crawling towards the key 160.00 area
USD/JPY breaks 160 as Warsh turns up heat
USD/JPY Price Forecast: Retreats from one-month top as bullish bias remains below 160.00
USD/JPY was given a much-needed jolt last Friday, with Fed Chair Kevin Warsh doing enough to restore some of the Fed's inflation-fighting credibility. That resulted in a sharp increase in pricing for a Fed rate hike this year, pushing USD/JPY to levels not seen since the latter parts of July.
The Yen gave back some of its recent advance that was triggered by US and Japanese intervention. USDJPY managed to print above the 158.05 resistance which indicates a wider range for rebound towards the 160.85 resistance.
The US Dollar remained supported above 157.50 against the Japanese Yen. USD/JPY seems to be facing a major hurdle near 159.60, which is acting as a breakout zone.
It has not been an easy week for the Japanese yen. Over the last four trading sessions, USD/JPY has posted a move of only around 0.3%, reflecting a market that continues to lack clear direction and remains trapped in a phase of neutrality.
EUR/USD targets 1.1600 as USD/JPY and USD/CAD remain bullish on dips, keeping US dollar strength in focus ahead of the Jackson Hole speeches.
The Yen gave back some of its recent advance that was triggered by US and Japanese intervention. USDJPY managed to print above the 158.05 resistance which indicates a wider range for rebound towards the 160.85 resistance.
USD/JPY steadied around 159.31 on Thursday, remaining in a narrow range. Investors continue to assess the outlook for Bank of Japan monetary policy.