USDJPY driving higher The dollar kept up the pressure as the Fed set a slightly dovish tone for the remainder of the year. The latest move higher hit some resistance after testing the mid-158.00 area.
With hindsight perhaps the comments from US Treasury Secretary Scott Bessent were ill-timed. The day he said that “I am the house, bet against me if you want” marked a higher-low in USD/JPY, and since then the pair has gained more than 500 pips.
The American currency is moving higher as traders focus on escalation in the Middle East.
USDJPY managed to add more bonus above 157.85 while drop pressure still overshadow the market as traders expect an intervention from BOJ anytime Intraday showing resistances at 159.00 and 160.00 while a drop wave may hit the market toward 156.40 and 153.90 Above 160.00 more advance is likely with resistances at 160.90 and 161.95 […]
USD/JPY has recently been trading in a narrow range between 157.35 and 158.50 but there's growing evidence that a breakout is due.
USD/JPY Price Forecast: Likely find direction in this US CPI week
US inflation data dominates the week ahead for USD/JPY, with Wednesday's CPI and Thursday's PPI reports likely to influence Treasury yields and broader risk appetite.
The trading week has come to an end and a lack of direction around the yen remains evident in the short term. This can be seen in the performance of USD/JPY over the last three trading sessions, where the pair has recorded moves of barely 0.3%, highlighting a market that continues to develop within a broadly neutral environment.
The American currency stays strong ahead of the weekend.
USD/JPY Price Forecast: Wavering around 158.00 with 200-day SMA holding bulls
Looking at the 4-hour chart, the pair surpassed the 50% Fib retracement level of the downward move from the 159.03 swing high to the 156.37 low. The pair settled above the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
The question now is whether EUR/USD, which has been battling idiosyncratic headwinds sparked by renewed concerns about the French fiscal outlook, could follow the move we saw in the yen on Thursday.