Japanese Yen - Gradually approaching the 160 level; market wary of intervention risk

The U.S. dollar/JPY has continued to inch toward the 160 psychological level, but overall it is still making a slow upward advance—possibly constrained by concerns that the Japanese authorities may intervene. The technical chart shows a bullish signal as the MACD has moved above the signal line, and the 10-day moving average has risen above the 25-day moving average, forming a "golden cross.” It is estimated that in the near to mid term, USD/JPY will likely maintain an upward bias.

Near-term resistance is expected around the 160 level and 106.80. Further resistance to watch is at 162 up to 162.80, and beyond that potentially toward 165. Near-term support is forecast at 158.60 and 158. The next supporting level is indicated at the 100-day moving average around 157.50, followed by 156.70.

Forecast range:

Resistance: 160.00* – 160.80 – 162.00 – 162.80 – 165.00
Support: 158.60 – 158.00 – 157.50 – 156.70

Key focus:

Monday

• Japan Q1 corporate capital expenditure (07:50)
• Japan May manufacturing PMI (08:30)

Wednesday

• Japan May services PMI (08:30)

Friday

• Japan April household spending (07:30)
• Japan April leading indicators (13:00)

Any questions? contact our professional analysis team