USD/JPY Price Forecast: US Dollar keeps crawling towards the key 160.00 area

The Japanese Yen (JPY) is currently on the defensive against the US Dollar (USD) as investors await key data releases and the Jackson Hole symposium, according to financial news. The USD/JPY pair has extended gains to levels beyond 159.30 at the start of the European session, getting closer to the crucial 160.00 mark. Concerns about potential yen intervention are limiting the dips, but fears over Japan's fiscal stability and the discrepancy between the Bank of Japan (BoJ) and other major central banks' interest rates pose a significant challenge to yen appreciation.

The market is eagerly watching the US Personal Consumption Expenditures (PCE) Price Index figures, released on Wednesday, and Federal Reserve Chairman Kevin Warsh's speech at Jackson Hole on Friday. USD/JPY currently trades at 159.32, reflecting a trend of higher lows and higher highs since hitting a low of 155.20 in early August.

Bulls are targeting the 160.00 level, with momentum indicators showing moderately positive signs, including a Relative Strength Index (14) near 58 and a widening MACD histogram with green bars. Initial resistance is believed to be around the area between the August 18 high at 159.75 and the 160.00 level, which could prompt a Tokyo intervention.

Should the price move higher, the July 31 high near 160.90 would become a key focus. On the downside, a significant bearish reversal could be tested at the June 19 low of 158.10, followed by the August 7 low of 156.70 and the post-intervention low of 155.23.