USD/JPY Price Forecast: US Dollar recovery is likely to be tested at 156.70 area
The Japanese Yen (JPY) is trimming some gains against the US Dollar (USD) on Friday, but still on track to its strongest weekly performance since July’s US-Japan coordinated intervention.
The US Dollar (USD) is gaining strength against the Japanese Yen (JPY) on Friday, but faces potential resistance at the 156.70 area. Analysts believe the recent 500-pip decline between Wednesday and Thursday could be due to Bank of Japan (BoJ) current account data, suggesting no intervention was involved. The BoJ is considering a faster pace of tightening if conditions warrant, which poses a risk to the upward trend.
USD/JPY is currently trading at 156.37, 100 pips above Thursday's low. Bulls need to reclaim support around 156.70, followed by the 158.05-158.50 region. If this level breaks, traders should watch the February 23 low (154.00) and year-to-date lows (152.20).
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