|

USD/JPY Price Forecast: Reclaims 158.00 as bulls target intervention area

  • USD/JPY clears 20-day SMA, confirming buyers are gaining traction.
  • RSI breaks above 50, signaling renewed bullish momentum strength.
  • Move past 158.75 exposes 159.00 and intervention risk zone.

USD/JPY rallies past the 158.00 figure and also above the 20-day Simple Moving Average of 158.23, up by over 0.32% on Thursday as buyers target the 50-day SMA at 158.75 as the next key resistance.

USD/JPY Price Forecast: Technical outlook

Price action shows that buyers are moving in, as USD/JPY printed a higher high over the last four trading days, clearing the path to reclaim 158.00. Momentum is bullish, as seen in the Relative Strength Index (RSI), which has cleared the 50-neutral level, an indication that buyers are gaining steam.

On the upside, the next resistance is the 50-day SMA, which lies ahead of the 159.00 figure. Traders should be aware that the pair is near the Japanese authorities' intervention zone, so a move within the 159.00-160.00 area would open the door for renewed action by the Bank of Japan (BoJ).

Downwards, if USD/JPY drops below 158.00, this clears the path to challenge the 100-day SMA at 157.43. On further weakness, the 157.00 milestone emerges as the next key support, followed by the May 6 cycle low of 155.03.

USD/JPY Price Chart – Daily

USD/JPY Daily chart

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 British Pound.

USDEURGBPJPYCADAUDNZDCHF
USD0.67%1.16%1.09%0.26%0.01%0.43%0.74%
EUR-0.67%0.48%0.48%-0.42%-0.66%-0.28%0.07%
GBP-1.16%-0.48%-0.51%-0.92%-1.16%-0.75%-0.40%
JPY-1.09%-0.48%0.51%-0.88%-1.09%-0.67%-0.31%
CAD-0.26%0.42%0.92%0.88%-0.17%0.22%0.48%
AUD-0.01%0.66%1.16%1.09%0.17%0.42%0.74%
NZD-0.43%0.28%0.75%0.67%-0.22%-0.42%0.32%
CHF-0.74%-0.07%0.40%0.31%-0.48%-0.74%-0.32%

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

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

More from Christian Borjon Valencia
Share:

Editor's Picks

GBP/USD recovers above 1.3200 as USD loses traction

GBP/USD is rebounding toward 1.3250 in the European session on Monday. The pair recovers ground as the US Dollar uptrend falters and traders resort to profit-taking ahead of Tuesday's US-Iran peace talks and Fed Chair Kevin Warsh's appearance on Wednesday at the ECB Forum.

EUR/USD hold gains around 1.1400 amid US Dollar weakness

EUR/USD is attempting a tepid bounce above 1.1400 in European trading on Monday, helped by a broadly weaker US Dollar. Traders continue to assess the developments surrounding talks to end the US war with Iran. The European Central Bank's annual forum and the US June employment data will be the highlights later this week.

Gold stays in red near $4,050 as US-Iran clash revives inflation fears

Gold price remains in the negative territory around $4,050 in Monday's European trading. The bullion struggles as military clashes between the United States and Iran in the strategic Strait of Hormuz have revived inflation concerns, bolstering Fed rate hike expectations. However, a broad US Dollar retreat is helping limit Gold's downside.

Pi Network risks fresh record low as bears tighten their grip

Pi Network price edges lower on Monday, threatening a steeper correction below the all-time low of $0.1184 recorded on June 6. The negative funding rate reaffirms the sell-side dominance as the Pi2Day excitement fades. From a technical perspective, PI continues its bearish spiral, with downside momentum gaining traction despite oversold warnings.

How Kevin Warsh upended the game plan for Gold
Something is breaking inside the Federal Reserve's new strategy, signaling a massive regime change for macro markets. Under the leadership of newly appointed Fed Chair Kevin Warsh, the traditional framework of forward guidance and predictable rate paths could be dismantled soon.
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.