Japanese Yen slides after soft Household Spending data; USD/JPY eyes 160.00 mark
Markets are leaning heavily towards another TACO, and EUR/USD and USD/JPY sit at the centre of that view. Both the euro and yen are weakening despite multiple hikes being priced for the ECB and BOJ, reflecting their exposure to energy supply risks.
USD/JPY steady near 160.00 as weak ISM data offsets geopolitical bid
The American currency is moving lower as demand for safe-haven assets declines despite rising tensions in the Middle East.
It's a big week for US data as we get U.S. inflation data that will probably start to show the initial impacts of higher oil prices. Core PCE is released on Thursday and then CPI a day later, with headline CPI expected to have jumped to 3.3% from last month's 2.4% print.
USD/JPY eases as US-Iran ceasefire talks weigh on US Dollar, ISM PMI softens
The pair dropped towards the target and support of 157.25-65 and managed to rebound again. The market is still holding a trading zone with resistances around 160.20 and 161.95, where each resistance could lead to a correction toward the 157.25-65 zone.
Our intraday forex analysis includes USDJPY analysis, USOIL, and SPX 500, highlighting key support and resistance levels for each pair. USDJPY hitting firm resistance Our USDJPY analysis shows The Japanese yen gained traction after hitting a double top towards the 160.00 level.
USD/JPY Price Forecast: Continues to hold 20-day EMA amid fears of Middle East war escalation
The Bank of Japan's communication is becoming a key driver for USD/JPY as markets increasingly price in a possible rate hike. Investors are watching whether the BoJ signals a broader tightening cycle, which could strengthen the yen and push the pair lower.
USD/JPY weakens despite strong US NFP as intervention risks cap gains
USD/JPY trades sideways before US jobs report with intervention risks in focus