|

USD/JPY Price Forecast: Consolidating above 161.00 amid growing intervention risks

  • USD/JPY remains steady around 1.61.30, with long-term highs at 1.61.95 in sight.
  • The Yen is on the defensive amid rising bets of Fed rate hikes.
  • Tokyo might intervene on Friday to take advantage of the thinned trading volumes amid the US Juneteenth festivity.

The Japanese Yen (JPY) remains offered against the US Dollar (USD) on Friday, and the USD/JPY pair stands comfortably around 161.30, its highest level since 2024, way beyond the level that triggered an alleged intervention on April 30.

Markets have remained oblivious to the Bank of Japan’s (BoJ) decision to hike rates to 31-year highs earlier this week. Speculative traders have kept selling the Japanese currency, lured by rising bets that the US Federal Reserve will be forced to hike interest rates in the second half of the year.

On Thursday, Japan’s Chief Cabinet Secretary, Minoru Kihara, reiterated that the authorities are ready to respond appropriately to currency moves “as needed at any time”. Tokyo tends to intervene in moments of thin liquidity, and, in this case, the Juneteenth bank holiday in the US provides a good opportunity.

Technical Analysis: The 40-year high, at 161.95, is at hand

Chart Analysis USD/JPY


USD/JPY trades at 161.26, holding a constructive bullish tone with no sign of a trend shift on the horizon. The Relative Strength Index (RSI) in 4-hour charts remains at 66.46, leaning toward overbought territory without yet flashing an exhaustion signal. The Moving Average Convergence Divergence (MACD) is modestly positive at 0.09, hinting that upside momentum is still in play.

On the topside, Thursday's high at 161.79 and the 40-year high at 161.95 are the main resistance levels. Further up, bulls might target the 127.2% Fibonacci extension of the June 11-18 rally, at 162.38.

To the downside, the session low, at the 161.00 area, is holding bears for now, closing the path to Thursday's low, at 160.45, and the 160.00 psychological level.

(The technical analysis of this story was written with the help of an AI tool.)

Japanese Yen Price Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Swiss Franc.

USDEURGBPJPYCADAUDNZDCHF
USD0.11%0.09%-0.03%0.04%0.04%0.30%0.30%
EUR-0.11%-0.03%-0.15%-0.07%-0.06%0.17%0.19%
GBP-0.09%0.03%-0.13%-0.05%-0.01%0.22%0.22%
JPY0.03%0.15%0.13%0.06%0.10%0.31%0.32%
CAD-0.04%0.07%0.05%-0.06%0.05%0.25%0.26%
AUD-0.04%0.06%0.01%-0.10%-0.05%0.22%0.25%
NZD-0.30%-0.17%-0.22%-0.31%-0.25%-0.22%-0.00%
CHF-0.30%-0.19%-0.22%-0.32%-0.26%-0.25%0.00%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

Author

Guillermo Alcala

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

More from Guillermo Alcala
Share:

Editor's Picks

GBP/USD bounces back above 1.3200 after strong UK Retail Sales data

GBP/USD extends the rebound above the 1.3200 mark in early Europe on Friday. Stronger-than-expected UK Retail Sales data provide a much-needed lift to the British Pound and the pair amid a chaotic UK political environment.

EUR/USD recovers above 1.1450 on USD pullback

EUR/USD recovers losses and rises back above 1.1450 in the European session on Friday. The pair finds traction as the US Dollar (USD) pulls back sharply on profit-taking amid thin trading conditions, following the hawkish Fed-led rally.

Gold rebounds from one-week low; upside seems limited amid hawkish Fed, bullish USD

Gold recovers slightly from over a one-week low, touched earlier this Friday, though the upside potential seems limited in the face of a bearish fundamental backdrop. Against the backdrop of the US Federal Reserve's hawkish tilt, the uncertainty surrounding the next round of US-Iran negotiations continues to push the US Dollar higher for the third straight day.

Solana extends correction despite ETF inflows, RWA adoption

Solana (SOL) price edges below $70 extending its losses for the fourth straight day this week. The institutional demand for Solana is building, with steady inflows so far this week and Morgan Stanley’s amended S-1 filing for a Solana-focused Exchange-Traded Fund.

Solana extends correction despite ETF inflows, RWA adoption

Solana (SOL) price edges below $70 on Friday, extending its losses for the fourth straight day this week. The institutional demand for Solana is building, with steady inflows so far this week and Morgan Stanley’s amended S-1 filing for a Solana-focused Exchange-Traded Fund.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.