USD/JPY Price Forecast: Climbs on safe-haven US Dollar gains
USD/JPY advances for the third straight day, gaining 0.07% on Monday as the Greenback remains underpinned by its safe-haven appeal, and expectations for a less dovish Federal Reserve (Fed). The pair trades at 158.02 at the time of writing.
USD/JPY Price Forecast: Technical outlook
The US Dollar remains underpinned despite the high risks of intervention by Japanese authorities.
USD/JPY rose to a daily high of 158.90, ahead of 159.00, which could have raised the alarm amongst Japanese authorities. However, traders booked profits, as the pair retreated toward the current exchange rate.
Momentum is tilted to the upside as depicted by the Relative Strength Index (RSI), which is getting close to overbought territory.
That said, the USD/JPY first resistance is 159.00. A breach of the latter increases the chances of a reversal as the exchange rate would be at the intervention zone, seen at around the 159.00-160.00 area.
Conversely, if USD/JPY tumbles below the March 3 high at 157.97, which turned support, the next stop would be the March 5 swing low of 156.45. On further weakness, the next stop would be the 50-day Simple Moving Average (SMA) at 156.15 ahead of the confluence of the 20 and 100-day SMAs at 155.49/51.
USD/JPY Price Chart – Daily
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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