The Japanese yen remains under pressure against the US dollar, but warning signs are beginning to emerge across several key yen crosses. While USD/JPY continues to trade near multi-month highs, the risks of another intervention from Japan's Ministry of Finance (MOF) are rising.
USD/JPY Price Forecast: Stalls near intervention area as bulls eye 160.00
The yield of 30-year Treasuries tested new highs amid inflation worries.
initial reaction is for the USDJPY to move lower. The price had moved above the 159.00 midpoint of the trading range that confined the pair going back to early March to end of April between 158.00 to 160.00.The low from the North American session yesterday came in at 158.599.
The USD/JPY has resumed its steady climb after Japan intervened at the end of April, with further operations widely suspected in early May. Since then, price action has turned more constructive, particularly after the pair reclaimed the key 158.00 level — an important technical threshold.
USDJPY managed to hit the target of 157.50-70 and above. As we see from the chart, the market still has the chance for a further advance as this zone could control the market movement between support 155.00 and .resistance 160.20-60 Above 160.60 more advance is likely with resistance at 161.95.
The dollar to Yen (USD/JPY) exchange rate strengthened to highs near 158.5 at the start of the week, maintaining pressure on the Japanese currency after another rise in US Treasury yields. MUFG notes that the yen remains vulnerable in the short term, especially with energy prices rising again and global bond markets under renewed.
Monday's US session was defined by a sharp pivot in geopolitical sentiment after President Donald Trump announced he was delaying planned military strikes against Iran following requests from Gulf allies, including Saudi Arabia, Qatar and the UAE, who argued that a diplomatic resolution was within reach. The news provided a meaningful boost to risk assets, weighed on the US dollar and pulled oil prices lower as markets repriced the immediate probability of a military escalation.
The American currency is losing ground as traders ignore rising oil markets.
US dollar continues to put pressure on other currencies to kick off the week, as rates in American continue to climb.
USD/JPY climbed to 158.93 on Monday, marking the yen's sixth consecutive session of decline. The Japanese currency is under pressure from a stronger dollar amid rising expectations that the Federal Reserve may raise interest rates this year to curb inflation.
Intraday analysis covering USDJPY, USDCAD, and GER 40 peaks lower, focusing on short-term price action, key support and resistance levels, and intraday market momentum across major instruments. USDJPY continues bull run The Dollar edges higher after a bullish continuation saw over 300 pips added to the value of the pair.