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USD/JPY Price Forecast: Remains above 163.00 near fresh 40-year highs

  • USD/JPY trades just below its new 40-year high of 163.24.
  • The 14-day Relative Strength Index at 66.10 signals strong bullish momentum.
  • The currency pair could find initial support at the nine-day EMA of 162.71.

USD/JPY inches higher after posting minor losses in the previous day, trading around 163.20 during the European hours on Thursday. The currency pair is holding a clear bullish bias as spot remains above both the nine-day and 50-day Exponential Moving Averages (EMAs). The alignment of the shorter EMA above the longer one reinforces the uptrend.

Additionally, the daily technical analysis indicates that the USD/JPY pair is moving upwards within an ascending channel pattern, suggesting a prevailing bullish bias. The 14-day Relative Strength Index (RSI) at 66.10 sits in bullish territory, hinting at strong but not yet extreme upside momentum.

The USD/JPY pair is positioned slightly below the fresh 40-year high of 163.24, which was reached on July 21. Further advances would support the pair to approach the upper boundary of the ascending channel around 165.00.

On the downside, the primary support lies at the nine-day EMA of 162.71, followed by the lower boundary of the ascending channel around 162.50. A sustained break below the channel would expose the 50-day EMA at 161.16. Further declines below the medium-term moving average would cause a bearish emergence and put downward pressure on the pair to navigate the region around the four-month low of 155.04, recorded on May 6.

Chart Analysis USD/JPY
USD/JPY: Daily Chart

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

Japanese Yen Price Today

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

USDEURGBPJPYCADAUDNZDCHF
USD-0.11%-0.01%0.02%-0.14%-0.10%0.22%0.07%
EUR0.11%0.12%0.15%-0.03%0.02%0.35%0.18%
GBP0.00%-0.12%0.04%-0.17%-0.11%0.23%0.06%
JPY-0.02%-0.15%-0.04%-0.18%-0.13%0.18%0.03%
CAD0.14%0.03%0.17%0.18%0.04%0.37%0.19%
AUD0.10%-0.02%0.11%0.13%-0.04%0.34%0.19%
NZD-0.22%-0.35%-0.23%-0.18%-0.37%-0.34%-0.18%
CHF-0.07%-0.18%-0.06%-0.03%-0.19%-0.19%0.18%

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

Akhtar Faruqui

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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