USD/JPY Struggles Below 158.00
USD/JPY is currently trading around 157.65, fluctuating within a narrow range just below the 158.00 resistance level. On the 1-hour chart, the EMA 34 (157.62) and EMA 89 (157.13) continue to act as dynamic supports, stabilizing the price amid selling pressure. However, the resistance zone between 158.00 and 158.10 remains a significant barrier, making it challenging for buyers to break through.
The indecisive price action reflects the market's cautious sentiment due to thin trading volumes following the holiday season. The US dollar has lost some appeal as US Treasury yields ease, while the Japanese yen has failed to capitalize on higher-than-expected Tokyo inflation data to gain momentum. The Bank of Japan's dovish stance continues to limit the yen's strength.
In the short term, if USD/JPY breaks above the 158.00 resistance, the next target could be 158.50, providing buyers with an opportunity to extend the uptrend. Conversely, if the price loses support at 157.30, selling pressure may drive it down to 157.00 or even lower. Traders should closely monitor signals from year-end economic data and bond yield movements, as any unexpected shifts could trigger significant price swings.
The indecisive price action reflects the market's cautious sentiment due to thin trading volumes following the holiday season. The US dollar has lost some appeal as US Treasury yields ease, while the Japanese yen has failed to capitalize on higher-than-expected Tokyo inflation data to gain momentum. The Bank of Japan's dovish stance continues to limit the yen's strength.
In the short term, if USD/JPY breaks above the 158.00 resistance, the next target could be 158.50, providing buyers with an opportunity to extend the uptrend. Conversely, if the price loses support at 157.30, selling pressure may drive it down to 157.00 or even lower. Traders should closely monitor signals from year-end economic data and bond yield movements, as any unexpected shifts could trigger significant price swings.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.