The American currency is moving lower as demand for safe-haven assets declines despite rising tensions in the Middle East.
It's a big week for US data as we get U.S. inflation data that will probably start to show the initial impacts of higher oil prices. Core PCE is released on Thursday and then CPI a day later, with headline CPI expected to have jumped to 3.3% from last month's 2.4% print.
USD/JPY eases as US-Iran ceasefire talks weigh on US Dollar, ISM PMI softens
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.
Our intraday forex analysis includes USDJPY analysis, USOIL, and SPX 500, highlighting key support and resistance levels for each pair. USDJPY hitting firm resistance Our USDJPY analysis shows The Japanese yen gained traction after hitting a double top towards the 160.00 level.
USD/JPY Price Forecast: Continues to hold 20-day EMA amid fears of Middle East war escalation
The Bank of Japan's communication is becoming a key driver for USD/JPY as markets increasingly price in a possible rate hike. Investors are watching whether the BoJ signals a broader tightening cycle, which could strengthen the yen and push the pair lower.
USD/JPY weakens despite strong US NFP as intervention risks cap gains
USD/JPY trades sideways before US jobs report with intervention risks in focus
Looking at the 4-hour chart, the pair cleared the 50% Fib retracement level of the downward move from the 160.46 swing high to the 158.27 low. The pair is now well above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
USD/JPY sits below 160.00 as Tokyo's intervention threat collides with Friday's NFP
We're nearing a unique day for markets tomorrow as the Non-farm Payrolls report is set to be released on a holiday when many major exchanges are closed. This in and of itself can lead to volatile conditions as thin liquidity meets motivation from the headlines, but we also have the brewing conflict in the Middle East to consider as that adds another very unpredictable layer to the drama.