USD/JPY Price Forecast: Bounces up from lows with bulls aiming for 158.65
The US Dollar has retraced previous losses against the Japanese Yen (JPY) on Monday, with the USD/JPY pair returning above the 158.00 line, after bouncing up from Friday’s low, at 156.68. The pair has regained some momentum, and bulls are aiming at last week's highs, in the 158.65 area.
The US Dollar has rebounded from its recent lows against the Japanese Yen on Monday, trading above the 158.00 level after falling to 156.68 on Friday. Traders are targeting the 158.65 area, last week's high, as the Bank of Japan's recent mixed opinions on inflation and rate hikes weigh on the Yen. Meanwhile, Japan's current account showed a first deficit in over a year and a half, further pressuring the Yen.
The USD/JPY pair is currently sitting at 158.38 within an ascending channel, with momentum indicators indicating modest upside potential. Bulls are also eyeing the 38.2% Fibonacci retracement level at 158.65, while further gains could push the currency pair towards the channel's top around 159.25. Should the pair hold above this level, it may attract focus to the 61.8% Fibonacci retracement at 160.64 and the July 31 high near 160.90.
Conversely, a breach of the channel's bottom at 157.05 and Friday's low near 156.70 could provide strong support, potentially extending the slide to the August 3 low near 155.23.
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