USD/JPY Price Forecast: Aims to extend rally above 160.00
The Japanese Yen (JPY) underperforms its major currency peers on Tuesday, with USD/JPY trading 0.16% higher at around 159.70 during the European trading session.
USD/JPY is forecast to continue its upward trend above the 160.00 level, trading at approximately 159.70 during the European session. The Japanese Yen has been underperforming as markets doubt the Bank of Japan's commitment to a hawkish policy despite economic concerns. Japan's GDP growth for the second quarter missed expectations, with services sector weakness raising concerns over a faster rate hike.
The US Dollar is marginally higher ahead of the FOMC minutes release on Wednesday. Technical analysis suggests resistance at the 20-day EMA and 61.8% Fibonacci retracement, with potential upside to the 78.6% retracement and recent cycle high. On the downside, support is seen at the 50% retracement, 38.2% and 23.6% retracements.
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