USD/JPY Sideways: Eyeing 157.65 Breakout or 156.00 Breakdown
The USD/JPY pair is currently trading around 157.27, maintaining a sideways trend on the 4-hour chart. The price is constrained by strong resistance at 157.65 and support at 156.00. The EMA 34 and EMA 89 continue to act as dynamic support, preventing deeper declines while also posing a barrier to short-term upward momentum.
Market sentiment remains cautious, particularly as low trading volumes in the early days of the new year have caused unstable price movements. The recent strength of the US dollar has supported the pair’s position, while ongoing uncertainty about the Bank of Japan’s (BoJ) monetary policy continues to affect medium-term prospects.
In the short term, if the price breaks above the 157.65 resistance zone, USD/JPY could climb toward 158.20 or higher. Conversely, a drop below the 156.00 support level would reinforce the bearish trend, paving the way for a correction toward the 155.00 area. Traders should monitor upcoming US economic data and any statements from the BoJ to determine clearer directional cues.
Low liquidity in the early days of the year may amplify volatility, necessitating stringent risk management strategies.
Market sentiment remains cautious, particularly as low trading volumes in the early days of the new year have caused unstable price movements. The recent strength of the US dollar has supported the pair’s position, while ongoing uncertainty about the Bank of Japan’s (BoJ) monetary policy continues to affect medium-term prospects.
In the short term, if the price breaks above the 157.65 resistance zone, USD/JPY could climb toward 158.20 or higher. Conversely, a drop below the 156.00 support level would reinforce the bearish trend, paving the way for a correction toward the 155.00 area. Traders should monitor upcoming US economic data and any statements from the BoJ to determine clearer directional cues.
Low liquidity in the early days of the year may amplify volatility, necessitating stringent risk management strategies.
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