USD/JPY Price Forecast: Bulls Defend 157.00 As Upside-Pressure Builds

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USD/JPY advanced on Thursday during the North American session, up by nearly 0.30% as the Greenback is boosted by risk appetite deterioration, solid US jobs data and hawkish comments by the Richmond Fed President Thomas Barkin. At the time of writing, the pair trades at 157.50 above its opening price.

USD/JPY Price Forecast: Technical outlook

The USD/JPY daily chart reveals the formation of a bullish engulfing chart pattern which implies that buyers outweigh sellers at around current price levels. Nevertheless, risks of intervention by Japanese authorities could cap the pair’s advance near the 158.00 figure.

Momentum remains bullish. The Relative Strength Index (RSI) is above its neutral line aiming upwards, with enough room to spare before turning overbought.

For a bullish resumption, the USD/JPY must clear the March 3 high at 157.97. A breach of the latter will expose the 158.50 mark, ahead of 159.00. Further gains lie overhead above the January 23 high at 159.22, followed by the 160.00 mark.