The US dollar strengthened after hotter-than-expected US inflation data lifted Treasury yields and revived concerns that inflationary pressures may remain sticky. That pushed USD/JPY back towards the key 158 level tied to recent suspected intervention from Japan's Ministry of Finance (MOF), while AUD/JPY and GBP/JPY also approached important resistance zones amid renewed yen weakness.
The American currency is moving higher as traders bet on hawkish Fed.
USDJPY managed to hit a fast drop after the Bank of Japan threatened to intervene in the market to back up the currency. As we see from the chart, prices managed to test the trend support around 15500-60 which could lead to a trading zone towards the resistance at 157.50-70.
USD/JPY Price Forecast: Likely extend advance towards 20-day EMA amid firm US Dollar
The US dollar is holding within a tight range ahead of today's US CPI report, as traders assess whether elevated oil prices linked to the Iran conflict continue to fuel inflationary pressures. While the broader bearish USD thesis remains intact for now, USD/JPY is rebounding towards key resistance near 158 following suspected intervention from Japan's Ministry of Finance.
Rising oil prices provided support to the American currency.
USDJPY managed to hit a fast drop after the Bank of Japan threatened to intervene in the market to back up the currency. As we see from the chart, prices managed to test the trend support around 15500-60 which could lead to a trading zone towards the resistance at 157.50-70.
USD/JPY Price Forecast: At make or a break near advancing trendline around 157.00
Intraday bias in USD/JPY remains neutral at this point. On the downside, break of 155.01 will resume the fall from 160.71 to 152.25 support next.
USD/JPY begins the new week in what feels like perpetual gridlock, with buoyant risk appetite, solid US economic data and an improving backdrop for global economic growth continuing to exert upside pressure on the pair. At the same time, the ongoing threat of BOJ intervention and relentless hopes for an eventual peace agreement between the US and Iran to reopen the Strait of Hormuz have delivered a near-perfect offset, keeping USD/JPY contained to a narrow sideways range just beneath multi-decade highs.
USD/JPY slides toward 156.60 as safe-haven Yen gains on Middle East tensions
The American currency is losing ground amid falling demand for safe-haven assets.