USD/JPY Price Forecast: Strength beyond 160.00 awaited amid bullish technical setup
USD/JPY stayed in consolidations below 160.45 short term top last week and outlook is unchanged. Initial bias remains neutral first and further rise is expected with 157.49 cluster support (38.2% retracement of 152.25 to 160.45 at 157.31) intact.
USD/JPY is being driven by energy prices, not rates, with BoJ intervention risk the only meaningful counterweight as pressure builds on Japan's bond curve. The economic calendar is largely irrelevant in this environment, leaving direction tied to developments in oil and geopolitics.
USD/JPY hovers below 160 amid intervention fears and Middle-East tensions
The American currency is losing ground as traders react to inflation data and focus on the situation in the Middle East.
The US dollar started off the week on the soft side, only to turn around yet again.
The pair managed again to hit another correction while still facing the support zone of 157.25-65, which could hold prices inside this trading zone toward resistances 160.20 or 161.95. Above 161.95 the market could enter a new uptrend wave with first target toward 163.80.
USD/JPY returns above 159.00 with Iran's peace deal on tenterhooks
USD/JPY remains rangebound between 158 and 160, with upside pressure building toward 160.40 as yield differentials continue to favor the US dollar.
USD/JPY is still extending consolidations below 160.45 and intraday bias stays neutral. Further rise is expected as long as 157.49 cluster support (38.2% retracement of 152.25 to 160.45 at 157.31) holds.
The US Dollar found support at 157.85 and started a fresh increase against the Japanese Yen. USD/JPY traded above 158.40 to enter a positive zone.
USD/JPY Price Forecast: Head-and-shoulders signals downside risk