The American currency is moving higher as traders focus on inflation risks.
Recent trading sessions have started to become challenging for the stability of the Japanese yen's strength, as USD/JPY has now posted a three-session bullish streak, with a gain of around 0.8% in the short term. This reflects that the US dollar has begun to recover in strength.
The one-year uptrend on the USD/JPY chart continues to hold, supported by sustained dollar strength, even as BOJ tightening expectations increase.
USDJPY managed to hit a fast drop after the Bank of Japan threatened to intervene in the market to back up the currency. As we see from the chart, prices managed to test the trend support around 155.00-60 which could lead to a trading zone towards the resistance at 157.50-70.
USDJPY advances for the third straight day, as stalling peace talks in the Middle East fuel uncertainty and boost dollar's safe-haven appeal, while fresh rise of inflation in the US adds to Fed's hawkish stance that underpins the greenback.
USD/JPY rose to 157.65 on Wednesday, marking a third consecutive day of gains. The yen came under pressure following stronger-than-expected US inflation data, reinforcing expectations that the Federal Reserve will maintain its hawkish stance.
USD/JPY Price Forecast: Bulls move in as pair bounces toward 158.00
The US dollar strengthened after hotter-than-expected US inflation data lifted Treasury yields and revived concerns that inflationary pressures may remain sticky. That pushed USD/JPY back towards the key 158 level tied to recent suspected intervention from Japan's Ministry of Finance (MOF), while AUD/JPY and GBP/JPY also approached important resistance zones amid renewed yen weakness.
The American currency is moving higher as traders bet on hawkish Fed.
USDJPY managed to hit a fast drop after the Bank of Japan threatened to intervene in the market to back up the currency. As we see from the chart, prices managed to test the trend support around 15500-60 which could lead to a trading zone towards the resistance at 157.50-70.
USD/JPY Price Forecast: Likely extend advance towards 20-day EMA amid firm US Dollar
The US dollar is holding within a tight range ahead of today's US CPI report, as traders assess whether elevated oil prices linked to the Iran conflict continue to fuel inflationary pressures. While the broader bearish USD thesis remains intact for now, USD/JPY is rebounding towards key resistance near 158 following suspected intervention from Japan's Ministry of Finance.