As we see over the previous chart, the pair managed to rebound from support 155.00-60 whilst closing to the resistance at 159.40. USDJPY still has the chance for a further advance as this zone could control the market movement between support 155.00 and resistance 160.20-60.
USD/JPY Price Forecast: Trades flat near 159.00 as investors seek fresh developments on Iran war
USD/JPY remains heavily tied to oil prices and relative central bank expectations, leaving developments in the Gulf, a speech from BOJ board member Koeda, and upcoming US economic data set to remain in the driving seat for the pair in the near term.
The American currency is losing ground as demand for safe-haven assets declines.
Recent sessions have not been easy for the Japanese yen, as USD/JPY has gained close to 0.8% over the last five sessions, showing that dollar strength remains relevant in the short term.
The Japanese yen remains under pressure against the US dollar, but warning signs are beginning to emerge across several key yen crosses. While USD/JPY continues to trade near multi-month highs, the risks of another intervention from Japan's Ministry of Finance (MOF) are rising.
USD/JPY Price Forecast: Stalls near intervention area as bulls eye 160.00
The yield of 30-year Treasuries tested new highs amid inflation worries.
initial reaction is for the USDJPY to move lower. The price had moved above the 159.00 midpoint of the trading range that confined the pair going back to early March to end of April between 158.00 to 160.00.The low from the North American session yesterday came in at 158.599.
The USD/JPY has resumed its steady climb after Japan intervened at the end of April, with further operations widely suspected in early May. Since then, price action has turned more constructive, particularly after the pair reclaimed the key 158.00 level — an important technical threshold.
USDJPY managed to hit the target of 157.50-70 and above. As we see from the chart, the market still has the chance for a further advance as this zone could control the market movement between support 155.00 and .resistance 160.20-60 Above 160.60 more advance is likely with resistance at 161.95.
The dollar to Yen (USD/JPY) exchange rate strengthened to highs near 158.5 at the start of the week, maintaining pressure on the Japanese currency after another rise in US Treasury yields. MUFG notes that the yen remains vulnerable in the short term, especially with energy prices rising again and global bond markets under renewed.