USD/JPY retreats from 160.00 as ceasefire crushes Oil premium
USD/JPY is showing signs of fatigue after stalling at the key 160 resistance level, with bearish divergence hinting at a potential pullback. At the same time, Nikkei 225 futures are building a constructive base above 50k, supported by the prospect of a stronger Japanese yen.
USD/JPY tests 160.00 as ceasefire uncertainty keeps the Yen under pressure
It's an interesting backdrop as we go deeper into an important week. Later this week US inflation data is expected to show the initial impact of higher energy prices.
Forex traders also focus on Trump's threats against Iran and wait for news from the Middle East.
USD/JPY nears 160 as Trump hints at nuclear war
Hormuz deadline and US CPI risks continue to dominate market sentiment, keeping dollar pairs, commodities, and equities highly reactive. Key scenarios include bullish breakout risks across crude oil and the US Dollar Index (DXY), as both hold near critical resistance levels ahead of the 8 PM Eastern Time deadline set by President Trump for Iran to reopen the Strait of Hormuz and agree to negotiations within a ceasefire framework.
USD/JPY Price Forecast: Ascending 20-day EMA supports more upside
The pair dropped towards the target and support of 157.25-65 and managed to rebound again. The market is still holding a trading zone with resistances around 160.20 and 161.95, where each resistance could lead to a correction toward the 157.25-65 zone.
Japanese Yen slides after soft Household Spending data; USD/JPY eyes 160.00 mark
Markets are leaning heavily towards another TACO, and EUR/USD and USD/JPY sit at the centre of that view. Both the euro and yen are weakening despite multiple hikes being priced for the ECB and BOJ, reflecting their exposure to energy supply risks.
USD/JPY steady near 160.00 as weak ISM data offsets geopolitical bid