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 paused briefly midweek after a series of solid gains, currently trading at 157.59. The Japanese currency remains under pressure from a strengthening US dollar amid concerns that a prolonged conflict in the Middle East could keep energy prices elevated and heighten inflation risks.
USDJPY hits resistance The dollar took a breather from its recent rally, with the pair adding over 200 pips this week. Intraday, the pair is trying to hold its recent high at 158.00, and a close above this level would first send the greenback towards the next target at 158.60.
USD/JPY extends rally as Middle East conflict adds to Yen weakness
It has been a difficult week for the yen, mainly because the USD/JPY pair has gained more than 1.00% over the last two sessions, reflecting noticeable weakness in the Japanese currency against the US dollar.
USD/JPY rises as US Dollar gains amid Iran conflict
Forex traders sell currencies of net energy importers, which is bullish for the American currency.
The pair retreated last week and managed to close from the first support at 152.00. The uptrend wave is still ongoing towards 160.20, as long as the market remains above 150.70-90.
USD/JPY Price Forecast: Holds onto gains near monthly high above 157.00
On Friday the US Dollar was testing support in the ascending triangle formation but for the past month and change the currency had held up fairly well as the USD/JPY rally came back to life. As I covered in the Friday article and video, I still think that USD/JPY is a primary push point for the DXY basket which then carries impact into EUR/USD, GBP/USD and other USD pairs, but with the weekend events in Iran both the US Dollar and USD/JPY broke out in a big way to start the week.
The strong rally in the oil markets provided significant support to the American currency.
USD/JPY climbs on safe-haven Dollar demand, despite BoJ rate hike expectations