USD/JPY Price Forecast: Approaches almost two-year high near 160.70
The USD/JPY pair trades marginally higher to near 159.73 during the early European trading session on Tuesday. The pair edges up as the Japanese Yen (JPY) underperforms due to growing concerns regarding whether the Bank of Japan (BoJ) will raise interest rates in the near term.
Concerns over hawkish BoJ bets have been deepened due to growing economic worries in the wake of the Middle East crisis.
Last week, Former BoJ Deputy Governor and current member of Japan’s Council on Economic and Fiscal Policy, Masazumi Wakatabe, said that it is important to understand whether the economy can withstand tighter monetary conditions, Reuters reported.
Meanwhile, fears of Japan’s intervention into forex markets remain intact, with the USD/JPY pair approaching prior intervention levels at around 160.70. However, Japanese officials have been consistently avoiding mentioning any key forex levels.
As of writing, the US Dollar (USD) trades subduedly amid uncertainty surrounding the United States (US)-Iran permanent peace deal, with the US Dollar Index (DXY) wobbling around 99.15.
USD/JPY technical analysis
USD/JPY trades slightly higher at around 159.73, holding a bullish near-term bias as price remains above the 20-day Exponential Moving Average (EMA) at 158.94. The pair continues to consolidate near recent highs while staying underpinned by this dynamic support, and the 14-day Relative Strength Index (RSI) at roughly 60 suggests constructive but not yet overbought momentum, allowing room for further upside as long as the pair defends its underlying floor.
On the downside, immediate support is located at the 20-day EMA around 158.94, where a sustained break would hint at a deeper corrective phase toward 158.00. Looking up, the pair aims to revisit its almost two-year high at 160.74.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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