USD/JPY Price Forecast: Climbs on safe-haven Dollar gains
Global markets remain in a vulnerable spot as tension in the Middle East has driven a strong shot of volatility with Oil prices as the primary push point. A massive gap in Crude Oil prices to start this week drove similar gaps across macro markets, with US equities selling off and the US Dollar rallying up to a familiar spot of resistance.
USD/JPY advances as surging Oil prices, tensions weigh on Japanese Yen
The pullback in the oil markets put pressure on the American currency.
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.
Markets over the past week have been almost entirely beholden to the conflict between the United States and Israel against Iran, with the effective closure of the Strait of Hormuz at the centre. The disruption has created a clear divide between the energy haves and have-nots in currency markets, with those with vast reserves and production capacity benefiting from a positive terms-of-trade shock, while currencies linked to economies heavily reliant on imported energy have come under pressure.
The weak Non Farm Payrolls report raised worries about the health of the U.S. economy.
USD/JPY has been rising steadily and not even the Middle East war has dented the dollar's strength. Is the yen's safe haven appeal gone?
USD/JPY recovered strongly after Thursday's dip, with 156 as near-term support and 158–160 as the key resistance zone for the next upside move.
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: Hovers around 157.50 as bullish bias prevails
Looking at the 4-hour chart, the pair settled above 156.50, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The pair traded as high as 157.97 before there was a minor pullback.