Looking at the 4-hour chart, the pair settled above the 158.80 level and the 200 simple moving average (green, 4-hour). There was a clear move above the 50% Fib retracement level of the downward move from the 159.86 swing high to the 158.26 low.
USD/JPY Price Forecast: Reclaims 159.00 but RSI divergence caps upside
With headlines out of the Middle East seemingly trending in the right direction (for today at least!), traders are refocusing on more traditional market drivers like economic data and policy decisions.
USD/JPY edges up above 159.00 as the Strait of Hormuz curbs risk appetite
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.
Japanese Yen edges higher on intervention fears; USD/JPY eyes weekly low on weaker USD
USD/JPY steady below 160.00 amid Japan intervention risks
The American currency moved lower as traders focused on the weak NAHB Housing Market Index report.
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.
The US dollar remains under pressure, testing key support levels amid expectations of easing geopolitical tensions. The market continues to price in the possibility of renewed negotiations between the US and Iran, reducing demand for the dollar as a safe-haven asset and supporting riskier instruments.
USD/JPY Price Forecast: Defends 200-SMA support on H4; bulls seem hesitant near 159.00