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USD/JPY Price Forecast: Remains close to 159.00, descending channel top

  • USD/JPY may test the 159.00 barrier near the upper boundary of the descending channel.
  • The 14-day Relative Strength Index at 54.5 suggests steady upside momentum that is not yet overextended.
  • The initial support lies at the nine-day EMA of 158.51.

USD/JPY remains subdued for the second successive day, trading around 158.90 during the early European hours on Thursday. The currency pair is holding a constructive bullish bias as spot remains above both the nine-day and 50-day Exponential Moving Averages (EMAs).

Additionally, the 14-day Relative Strength Index (RSI) at 54.5 sits in neutral-positive territory, hinting that upside momentum is steady rather than stretched, which keeps the broader uptrend intact while the USD/JPY pair consolidates just under recent highs.

The daily technical analysis indicates that the USD/JPY pair is hovering just below the upper boundary of its descending channel, placing it in a critical "make-or-break" zone. A sustained breakout above this channel would confirm a bullish reversal; however, failure to clear this resistance level will likely stall the pair's momentum and result in a sideways trend.

A sustained break above the channel would support the USD/JPY pair to explore the region around the 22-month high of 160.73, which was recorded on April 30, followed by the all-time high of 162.00, recorded in July 2024.

On the downside, the USD/JPY pair may find the initial support at the nine-day EMA of 158.51, followed by the 50-day EMA at 158.23. Further declines below these averages would revive the bearish bias and put downward pressure on the pair to navigate the region around a nearly three-month low of 155.04, recorded on May 6, followed by the lower boundary of the descending channel around 153.80.

C
USD/JPY: Daily Chart

(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 weakest against the British Pound.

USDEURGBPJPYCADAUDNZDCHF
USD0.11%0.03%0.08%0.16%0.52%0.26%0.07%
EUR-0.11%-0.08%-0.04%0.04%0.40%0.10%-0.05%
GBP-0.03%0.08%0.09%0.12%0.50%0.22%0.03%
JPY-0.08%0.04%-0.09%0.06%0.45%0.11%-0.02%
CAD-0.16%-0.04%-0.12%-0.06%0.39%0.09%-0.10%
AUD-0.52%-0.40%-0.50%-0.45%-0.39%-0.30%-0.50%
NZD-0.26%-0.10%-0.22%-0.11%-0.09%0.30%-0.19%
CHF-0.07%0.05%-0.03%0.02%0.10%0.50%0.19%

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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