USD/JPY Price Forecast: Bulls defend 157.00 as upside-pressure builds
USD/JPY is edging higher as traders position ahead of the latest US Nonfarm Payrolls report. The pair has rallied alongside a firmer US dollar amid mild risk-off flows and elevated geopolitical tensions.
The American currency gains ground as traders react to recent developments in the Middle East.
EUR/USD tests 1.16 support at the 200-day EMA, GBP/USD holds 1.3250, and USD/JPY pushes toward the historic 158–160 resistance zone. Thursday's forex breakdown.
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USD/JPY pulls back from weekly highs as Yen steadies near 157.00
USD/JPY was given every reason to continue rallying on Wednesday but couldn't: hot US economic data again dismissing fears about a growth slowdown seen late last week, another curtailment in Fed rate cut pricing this year, and a sharp recovery in risk appetite. Instead, it bucked the traditional playbook, delivering a bearish reversal signal on the daily timeframe, strengthened by the fact it arrived after the pair traded at fresh multi-week highs.
The US Dollar to Yen (USD/JPY) exchange rate pulled back on Wednesday, slipping to around 156.97 after briefly testing highs near 157.97 earlier in the week. Profit taking on long Dollar positions allowed USD/JPY to retreat from those highs, while the Yen drew additional support from hawkish comments by Bank of Japan Governor.
The American currency moved lower amid reports indicating Iran asked for negotiations with the U.S.
USD/JPY pulls back from one-month highs as US Dollar strength fades
The US dollar softens a bit early on Wednesday after rallying for the past few days.
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.