On one hand, the US dollar is strengthening due to increased demand for safe-haven assets. On the other, the Japanese economy is under pressure because of its heavy reliance on oil imports from the Middle East.
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.
The trading week continues and, for now, over the last two sessions, USD/JPY has begun to show a renewed buying bias, accumulating gains of more than 0.7% in the short term in favor of the US dollar and highlighting consistent weakness in the Japanese yen.
Rising demand for safe-haven assets provided support to the American currency.
USD/JPY rises as Oil supply fears and firm USD keep Yen under pressure
USDJPY keeps firm tone and heads towards Monday's peak (158.89) after broader uptrend (from 152.26, Feb 12 low) was briefly interrupted by shallow pullback (158.89/157.27 on Mon-Tue) when rally was capped by upper 20-d Bollinger band and subsequent dip contained by rising 20DMA (near-term price action continues to channel higher between these two indicators).
USD/JPY faces a critical 158.84 pivot. Will U.S. CPI data trigger a carry trade unwind or a rally toward 160.73?
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 Price Forecast: Clings around 158.00 on risk-off mood
USD/JPY has cooled after an aggressive three-week advance that carried the pair back toward major resistance. Momentum improved during the rally, but buyers were unable to sustain gains at key highs, leaving price vulnerable as it slips toward the lower boundary of its ascending structure.
The American currency is losing ground as traders monitor the wild swings in the oil markets.
USD/JPY trades flat as markets weigh US-Iran war and energy supply risks