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.
Rising oil prices provided support to the American currency.
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: At make or a break near advancing trendline around 157.00
Intraday bias in USD/JPY remains neutral at this point. On the downside, break of 155.01 will resume the fall from 160.71 to 152.25 support next.
USD/JPY begins the new week in what feels like perpetual gridlock, with buoyant risk appetite, solid US economic data and an improving backdrop for global economic growth continuing to exert upside pressure on the pair. At the same time, the ongoing threat of BOJ intervention and relentless hopes for an eventual peace agreement between the US and Iran to reopen the Strait of Hormuz have delivered a near-perfect offset, keeping USD/JPY contained to a narrow sideways range just beneath multi-decade highs.
USD/JPY slides toward 156.60 as safe-haven Yen gains on Middle East tensions
The American currency is losing ground amid falling demand for safe-haven assets.
USD/JPY edges lower as robust US payrolls clash with persistent Yen intervention threats
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 recovery stalls below 157.00 as intervention risks linger
FX markets are trading in typically subdued fashion ahead of Nonfarm Payrolls, although implied volatility suggests traders still expect sizeable moves once the data hits. USD/JPY remains sensitive to further intervention fears near 158, while GBP/USD is showing signs its multi-week rally is losing momentum.