|

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

AUD/USD steadies above 0.7100 after RBA-speak

AUD/USD holds steady above 0.7100 in the Asian session on Tuesday, shrugging off hawkish comments from RBA Assistant Governor Sarah Hunter and Governor Michele Bullock. Meanwhile, escalating tensions in the Middle East and the Fed's hawkish outlook remain supportive of the bullish US Dollar undertone, weighing on the pair. The crucial Trump-Xi summit is later this week and remains in focus.

USD/JPY holds small gains near 157.50 as JPY intervention risks loom

USD/JPY posts modest gains while trading near 157.50 in the Asian session on Tuesday as intervention fears help limit losses for the Japanese Yen. However, the BoJ's dovish rate hike to a 31-year high keeps JPY bulls on the back foot. Meanwhile, the US Dollar retains a bullish undertone amid the Fed's hawkish outlook and escalating Middle East tensions, providing tailwinds for the pair.

Gold benefits from falling US bond yields; remains below $4,400 amid bullish USD

Gold regains positive traction during the Asian session on Tuesday, though it lacks bullish conviction and remains below $4,400. Falling oil prices ease inflation fears, dragging US bond yields lower and supporting the non-yielding yellow metal. Meanwhile, the Fed's hawkish stance, along with escalating Middle East tensions, keeps the US Dollar near its highest level since late July and acts as a headwind for the bullion.

Ripple and Stellar outlook: Momentum improves as bulls target further gains
Ripple (XRP) and Stellar (XLM) stabilize on Tuesday after extending their gains by nearly 9% at the start of the week on Monday. Improving momentum indicators support XRP and XLM bullish price action and hint at further rally. Meanwhile, traders should remain cautious as mixed derivatives data could limit upside as both tokens try to sustain their recent upswing.
Iranian President will head to New York for UN meeting
President Masoud Pezeshkian will lead an Iranian delegation at the United Nations General Assembly in New York on Tuesday, amid renewed hopes for a diplomatic solution to the Middle East conflict, CNBC reported on Monday. A high-ranking Iranian delegation, including Foreign Minister Abbas Araghchi, will accompany President Pezeshkian.
BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.