USD/JPY fell to 161.67 on Friday, with the yen fully recovering its losses from the beginning of the week. Market participants are once again increasing expectations of possible intervention by Japanese authorities, following the national currency's recent move to nearly 40-year lows.
USD/JPY Price Forecast: Dollar finds resistance at the 161.75 previous support
USDJPY (The yen) halts the upturn USDJPY (The yen) bounced against the dollar after finding resistance at the 162.75 level. • The latest move above 162.50 has prompted some buyers to cover and could pave the way for a bearish continuation.
Japanese assets are rallying after Finance Minister Satsuki Katayama said the government wants to encourage Japan's GPIF, the world's largest pension fund, to invest substantially more domestically.
The US Dollar gained bullish momentum after it settled above $160.80 against the US Dollar. USD/JPY even climbed above 162.00 before it faced rejection.
The American currency moved lower as falling oil prices reduced demand for safe-haven assets.
Rising Treasury yields provided support to the American currency.
USDJPY managed to pass above the short-term resistance zone of 161.95 which shows a strong advance still ongoing. Prices fell toward 160.50-70 on the suspected intervention before bouncing back.
The outlook for USD/JPY remains constructive as a hawkish Federal Reserve, resilient US dollar, and renewed geopolitical risk.
USD/JPY Price Forecast: Dollar remains capped below 162.40 resistance area
The American currency gained ground as traders focused on recent events in the Strait of Hormuz.
The American currency gains ground, supported by strong ISM Services PMI report.