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.
Intraday bias in USD/JPY is turned neutral with current retreat. On the upside, above 158.89 will extend the rise from 152.07 to 159.44 resistance.
The USD/JPY exchange rate pulled back slightly, moving from this week's high of 158.85 to 157 as geopolitical tensions fell and after Japan published strong macro data. So, what next for the pair ahead of the upcoming US inflation report?
The US dollar rally lost momentum as markets swung from panic to cautious optimism over the Iran conflict. Oil prices initially surged amid fears of supply disruptions through the Strait of Hormuz before reversing sharply as traders began pricing in the possibility that the conflict could be shorter than feared.
USD/JPY Price Forecast: Climbs on safe-haven Dollar gains
Global markets remain in a vulnerable spot as tension in the Middle East has driven a strong shot of volatility with Oil prices as the primary push point. A massive gap in Crude Oil prices to start this week drove similar gaps across macro markets, with US equities selling off and the US Dollar rallying up to a familiar spot of resistance.
USD/JPY advances as surging Oil prices, tensions weigh on Japanese Yen
The pullback in the oil markets put pressure on the American currency.
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.
Markets over the past week have been almost entirely beholden to the conflict between the United States and Israel against Iran, with the effective closure of the Strait of Hormuz at the centre. The disruption has created a clear divide between the energy haves and have-nots in currency markets, with those with vast reserves and production capacity benefiting from a positive terms-of-trade shock, while currencies linked to economies heavily reliant on imported energy have come under pressure.
The weak Non Farm Payrolls report raised worries about the health of the U.S. economy.
USD/JPY has been rising steadily and not even the Middle East war has dented the dollar's strength. Is the yen's safe haven appeal gone?