USD/JPY Price Forecast: Clings to gains near 158.50, over one-week top amid firmer USD
The USD/JPY pair touches a one-and-a-half-week high, around mid-158.00s during the Asian session on Wednesday, with bulls shrugging off fears about a potential government intervention to support the Japanese Yen (JPY) and taking cues from resurgent US Dollar (USD) demand.
Over the past week, the USD/JPY currency pair has managed to maintain its gains near the 158.50 mark, staying just above the one-and-a-half-week high. This rise is attributed to a stronger US Dollar and concerns surrounding a possible government intervention to support the Japanese Yen. Despite signs of moderating inflation and a cooling labor market, traders remain optimistic about a 85% chance of a US Federal Reserve interest rate hike by the end of the year.
The pair, however, may wait for the FOMC meeting minutes before committing to fresh bets. Technical indicators suggest that while the price is held near the 100-day SMA at 159.53 and the 50.0% retracement level at 158.52, a move above the latter could face resistance at the 50.0% retracement and the 100-day SMA. Further gains might confront resistance at the 61.8% Fibonacci retracement and the broader supply zone at 161.68 and 164.04.
On the downside, support levels are found at the 38.2% Fibonacci retracement at 157.22, the 23.6% level at 155.61, and the structural low near 153.00 if bearish pressure intensifies.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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