Looking at the 4-hour chart, the pair cleared a bullish flag pattern with resistance at 157.35. There was a clear move above the 61.8% Fib retracement level of the downward move from the 159.03 swing high to the 156.37 low.
The American currency is moving higher as economic reports highlight the strength of the economy.
Both bank's exchange rate forecasts put the Dollar-Yen rate above its latest level, but UBS expects a retreat to 158 in 2027 while JPMorgan's older projections stay at 164. The gap between UBS and JPMorgan's Dollar to Yen forecasts widens next year, with UBS anticipating a partial Yen recovery after renewed weakness into.
USD/JPY Price Forecast: Jumps to near 158.40 as traders reassess hawkish BoJ bets
USDJPY added more value above 157.85 as the drop pressure still overshadows the market as traders expect an intervention from the Bank of Japan. Intraday prices show resistances at 159.00 and 160.00, whilst a drop wave could hit the market toward 156.40 and 153.90.
Japanese Yen: USD/JPY rises as October BoJ hike bets fade – MUFG
USD/JPY Price Forecast: 50-day SMA caps recovery near 158.00
The American currency gains ground as traders focus on the strength of the U.S. economy.
USDJPY managed to re-test the support at 156.40 which could lead to a trading zone towards resistance 157.85, before the downtrend wave continues. Below 156.40, more of a drop could lead prices towards 153.90-154.40.
USD/JPY Price Forecast: Tests 157.00 support after slipping below nine-day EMA
The American currency continues to move higher as traders focus on rising Treasury yields.
The US dollar has strengthened against major currencies, with rising treasury yields adding fuel, yet USD/JPY has recently registered losses.