USD/JPY: Lost in Uncertainty Near 158.00
USD/JPY wavers like a weary warrior, hovering around the 158.00 level after reaching its highest point in months. The daily chart paints a picture of contradiction: above lies strong resistance at 158.55 and further at 165.79, while below, key support at 156.31 is reinforced by the EMA 34 and EMA 89 acting as protective shields. However, the bullish momentum seems to be fading, giving way to growing bearish pressure.
The broader outlook is clouded by impressive U.S. employment data, with 256,000 jobs created last month, but a declining unemployment rate at 4.1% and weaker-than-expected average hourly earnings, shaking expectations for Fed rate cuts. Meanwhile, U.S. Treasury yields surged to 4.788%, further pressuring the pair.
If USD/JPY breaks below the 156.31 support, the pair could slide toward 153.00, extending the downtrend. Conversely, a breach above 158.55 could ignite hopes for a new test of the Fibonacci level at 162.17. In a turbulent market, USD/JPY resembles a ship adrift at sea, waiting for decisive winds to steer it in a clear direction.
The broader outlook is clouded by impressive U.S. employment data, with 256,000 jobs created last month, but a declining unemployment rate at 4.1% and weaker-than-expected average hourly earnings, shaking expectations for Fed rate cuts. Meanwhile, U.S. Treasury yields surged to 4.788%, further pressuring the pair.
If USD/JPY breaks below the 156.31 support, the pair could slide toward 153.00, extending the downtrend. Conversely, a breach above 158.55 could ignite hopes for a new test of the Fibonacci level at 162.17. In a turbulent market, USD/JPY resembles a ship adrift at sea, waiting for decisive winds to steer it in a clear direction.
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