The move followed a sudden reversal in the US dollar alongside a slide in Treasury yields despite little in the way of fresh fundamental news. Crude oil futures also reversed earlier gains even though no countries have so far agreed to join the United States in escorting energy tankers through the Strait of Hormuz.
USD/JPY snaps four-session winning streak, retreats to 159.00 region
USD/JPY dips as markets eye Fed, BoJ meetings amid rising inflation risks
The American currency is losing ground as traders take some profits off the table near multi-month highs.
USDJPY managed to print above 159.45 which could push a further advance as the market still faces resistances around 160.20 and 161.95, where each resistance could push for a drop towards the 157.25-65 zone. Above 161.95, the market could enter a new uptrend wave with the first target toward 163.80.
USD/JPY Price Forecast: Remains above 159.50 amid persistent bullish bias
USD/JPY opens lower on FM pledge to “monitor” market developments
Escalating conflict in the Middle East continues to provide a powerful tailwind for the US dollar, delivering a positive terms of trade shock for the United States while simultaneously lifting global inflation risks.
Geopolitical tensions and high oil prices raised demand for safe-haven assets, providing additional support to the American currency.
USD/JPY edges higher, buoyed by US Dollar strength amid intervention risks
The Euro and Yen are very noisy on Friday, as the markets are trying to see if longer-term moves are possible in a world of uncertainty.
As we see over the chart, the market is 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. Above 159.45 more advance could hit the market while facing resistance at 160.20.