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- USD/JPY rises to 159.59, approaching the 160.00 pivot level, driven by strong US PMI data.
- Main resistance at 160.00 and highest since the beginning of the year at 160.32; Possibilities for Bank of Japan intervention loom large
- Support is found at 159.00, the June 14 high of 158.25 and 158.00, with additional support at Tenkan-Sen (157.69) and Senkou Span A (157.40).
The US dollar rose against the Japanese yen on Friday and is approaching intervention levels ahead of the weekend. Stronger-than-expected US S&P global PMIs overshadowed weaker housing data and weighed on the Japanese yen. So, USD/JPY It is trading at 159.59, a gain of 0.42%.
USD/JPY Price Analysis: Technical Outlook
The pair finally broke through the 159.00 mark and closed at the intervention levels reached on April 29, when the USD/JPY crossed the 160.00 mark. This sparked a reaction from the Bank of Japan, which intervened in the forex market, sending the pair down 400 pips to 156.06 after hitting a daily high of 160.32.
Despite this, USD/JPY remains biased to the upside, and the next resistance level will be at 160.00. Once that is cleared, the next is the year-to-date high of 160.32.
On the contrary, the most likely scenario due to intervention threats is the first support for USD/JPY at 159.00. Once above, the next support will be the June 14 high at 158.25, followed by 158.00. We see further losses at Tenkan-Sen at 157.69, followed by Senkou Span A at 157.40, before Kijun-Sen at 157.11.
