USD/JPY rises as Oil supply fears and firm USD keep Yen under pressure
USDJPY keeps firm tone and heads towards Monday's peak (158.89) after broader uptrend (from 152.26, Feb 12 low) was briefly interrupted by shallow pullback (158.89/157.27 on Mon-Tue) when rally was capped by upper 20-d Bollinger band and subsequent dip contained by rising 20DMA (near-term price action continues to channel higher between these two indicators).
USD/JPY faces a critical 158.84 pivot. Will U.S. CPI data trigger a carry trade unwind or a rally toward 160.73?
USDJPY hit the second target at 157.60. As we see over the chart, the market facing a grey zone at 158.00-159.45 which is considered as a resistance zone, which could maintain the risk for another drop wave towards 155.30-50 and 152.00-50.
USD/JPY Price Forecast: Clings around 158.00 on risk-off mood
USD/JPY has cooled after an aggressive three-week advance that carried the pair back toward major resistance. Momentum improved during the rally, but buyers were unable to sustain gains at key highs, leaving price vulnerable as it slips toward the lower boundary of its ascending structure.
The American currency is losing ground as traders monitor the wild swings in the oil markets.
USD/JPY trades flat as markets weigh US-Iran war and energy supply risks
USDJPY hit the second target at 157.60. As we see over the chart, the market facing a grey zone at 158.00-159.45 which is considered as a resistance zone, which could maintain the risk for another drop wave towards 155.30-50 and 152.00-50.
Intraday bias in USD/JPY is turned neutral with current retreat. On the upside, above 158.89 will extend the rise from 152.07 to 159.44 resistance.
The USD/JPY exchange rate pulled back slightly, moving from this week's high of 158.85 to 157 as geopolitical tensions fell and after Japan published strong macro data. So, what next for the pair ahead of the upcoming US inflation report?
The US dollar rally lost momentum as markets swung from panic to cautious optimism over the Iran conflict. Oil prices initially surged amid fears of supply disruptions through the Strait of Hormuz before reversing sharply as traders began pricing in the possibility that the conflict could be shorter than feared.