USD/JPY Price Forecast: Rangebound below 159.50 as RSI momentum fades

USD/JPY remains trapped between 158.60 and 159.40 range.
RSI flattens in bullish territory, signaling stalled upside momentum.
Break below 159.00 exposes 158.78 and 158.15 supports.

Christian Borjon Valencia FXStreet

USD/JPY hovers at around 159.00, virtually unchanged, amid traders' fears that Japanese authorities might intervene in the FX markets. At the time of writing, the pair trades unchanged at around 159.02.

USD/JPY Price Forecast: Technical outlook

Price action remains contained within the 158.60-159.40 area, with buyers reluctant to push higher past 159.50 towards the 160.00 milestone. The confirmation of this is the Relative Strength Index (RSI) in bullish territory, but with a flattish slope during the last four trading days.

If bulls reclaim 159.50, look for a move towards the 159.75 psychological area, ahead of 160.00. Past this, the next resistance is the yearly peak at 160.73.

On the flip side, if sellers push the USD/JPY below 159.00, a move towards the 50-day Simple Moving Average (SMA) at 158.78 is on the cards. Once hurdled, the next stop would be the 20-day SMA at 158.15, followed by 158.00. On further weakness, a move towards the 100-day SMA at 157.56 is on the cards.

USD/JPY Price Chart – Daily

Japanese Yen Price This week

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies this week. Japanese Yen was the strongest against the Canadian Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.03%	-0.81%	0.14%	0.18%	-0.01%	-0.54%	-0.01%
EUR	-0.03%		-0.86%	0.18%	0.14%	-0.06%	-0.51%	-0.06%
GBP	0.81%	0.86%		0.98%	1.00%	0.81%	0.35%	0.77%
JPY	-0.14%	-0.18%	-0.98%		-0.01%	-0.23%	-0.74%	-0.19%
CAD	-0.18%	-0.14%	-1.00%	0.01%		-0.21%	-0.73%	-0.22%
AUD	0.01%	0.06%	-0.81%	0.23%	0.21%		-0.45%	0.08%
NZD	0.54%	0.51%	-0.35%	0.74%	0.73%	0.45%		0.42%
CHF	0.00%	0.06%	-0.77%	0.19%	0.22%	-0.08%	-0.42%

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

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

GBP/USD dips below 1.3350 with bullish momentum losing steam

The British Pound ticks lower against the US Dollar Monday, attempting to close a seven-day rally, as tensions rise again in the Strait of Hormuz, one of the critical points in the peace process between Washington and Tehran. The GBP/USD pair trades near 1.3340 at the time of writing, down from 1.3387 highs last week, although it maintains a near-term bullish trend intact.

EUR/USD drops toward 1.1400 as US Dollar rebounds

EUR/USD pair trades marginally lower, heading toward 1.1400 in the European session on Monday. The pair faces slight selling pressure as the US Dollar gains ground after a negative weekly close. Middle East concerns and the USD/JPY rally support the Greenback.

Gold sticks to modest losses amid Hormuz risks; lacks bearish conviction

Gold shows some resilience below the $4,150 level, and for now seems to have stalled its intraday retracement slide from a two-week high, levels just above the $4,200 mark, touched earlier this Monday. The commodity, however, retains its negative bias heading into the European session, seems to have snapped a three-day winning streak.

Dogecoin recovery stalls amid early signs of whale support

Dogecoin (DOGE) price nears $0.0770, maintaining a broadly consolidative tone for the last three days after Friday’s 4% rebound. The first-ever meme coin is losing retail interest as DOGE derivatives volume drops, while on-chain data shows early signs that large-wallet investors, commonly referred to as whales, are expanding their holdings.

Week ahead – ISM services PMI and Fed Minutes to shake Fed hike bets

The US dollar is finishing the week on the back foot against most of its major counterparts this week, losing the most ground against the kiwi, the franc and the pound. Despite the pullback, investors remained adamant in their view that the Fed may have to press the rate hike button before the turn of the year.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.