USD/JPY Price Forecast: Consolidates near 158.55/38.2% Fibo. before the next leg up
The USD/JPY pair extends the range play through the Asian session on Friday, stalling this week's solid recovery from its lowest level since May, touched in the aftermath of a joint US-Japan intervention.
USD/JPY prices are currently consolidating near the 158.55/38.2% Fibonacci level, after a solid recovery from its lowest point since May. Traders are waiting for crucial US Nonfarm Payrolls (NFP) data to provide fresh impetus. Geopolitical uncertainties, rising inflation fears, and expectations of at least one interest rate hike by the US Federal Reserve are all supporting the US Dollar (USD).
Meanwhile, the Japanese Yen (JPY) remains weak due to concerns over Japan's deteriorating fiscal situation, and a decline in Japan's Household Spending for the seventh straight month is further discouraging a Bank of Japan (BoJ) rate hike in September. From a technical standpoint, prices are capped near the 38.2% Fibonacci retracement level, with the MACD printing in positive territory.
However, the RSI around 50 indicates a neutral, consolidative market rather than a decisive trend shift, suggesting traders should wait for a move beyond the current level before placing new bullish bets. A further move above the 38.2% Fibo near 158.55 could face resistance at the 50.0% retracement at 159.61 and the 61.8% level at 160.66.
On the downside, initial support is at the 23.6% retracement level at 157.26, with a deeper correction towards 155.17 possible if the Yen breaks below that level.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
