USD/JPY Edges lower for second day as traders brace for Fed and BoJ
Demand for the safe-haven dollar declined despite rising oil prices.
Although the week has started to move in favor of the yen in the short term, with USDJPY showing a consistent decline over the last two sessions of around -0.5%, this move appears to reflect more of a phase of indecision rather than a solid recovery of the Japanese currency, especially after the strong appreciation of the U.S. dollar seen last week.
USD/JPY is extending consolidations below 159.74 and intraday bias remains neutral. On the upside, above 159.74 will target a retest of 161.94.
Dollar pair gains are holding key resistance levels ahead of major central bank meetings this week, following the RBA rate hike and further crude supply disruptions in the Middle East. Market sentiment remains cautious, with rate holds and hawkish tones expected, raising questions about whether the latest dollar and dollar pair surge has already priced in central bank policy expectations, leaving the currency vulnerable to near-term reversals.
USDJPY managed to print above 159.45 which could push a further advance as the market still faces resistances around 160.20 and 161.95, where each resistance could push for a drop towards the 157.25-65 zone. Above 161.95, the market could enter a new uptrend wave with the first target toward 163.80.
USD/JPY Price Forecast: Holds steady above 159.00 as bulls await Fed/BoJ policy updates
The move followed a sudden reversal in the US dollar alongside a slide in Treasury yields despite little in the way of fresh fundamental news. Crude oil futures also reversed earlier gains even though no countries have so far agreed to join the United States in escorting energy tankers through the Strait of Hormuz.
USD/JPY snaps four-session winning streak, retreats to 159.00 region
USD/JPY dips as markets eye Fed, BoJ meetings amid rising inflation risks
The American currency is losing ground as traders take some profits off the table near multi-month highs.
USDJPY managed to print above 159.45 which could push a further advance as the market still faces resistances around 160.20 and 161.95, where each resistance could push for a drop towards the 157.25-65 zone. Above 161.95, the market could enter a new uptrend wave with the first target toward 163.80.