The USD/JPY edges higher on Tuesday, rising nearly 0.25% as risk appetite deteriorated late in the New York session, even though the US President Donald Trump hinted at a de-escalation of the conflict. At the time of writing, the pair trades at 158.07, some 80 pips above its opening price.
USD/JPY Price Forecast: Technical Outlook
The technical picture is slightly bearish with the USD/JPY registering a shooting star candle on Monday. Although Tuesday’s price action formed a bullish candle, it revealed that sellers drove prices to a three-day low of 157.27, which opens the door for further downside.
The Relative Strength Index (RSI) shows that buyers are gathering steam, about to reach overbought territory.
If USD/JPY resumes its uptrend, the first area of interest would be the March 9 high at 158.90. Once surpassed, the pair will enter a potential intervention zone by Japanese authorities and the Bank of Japan at around 159.00-160.00.
Conversely, if sellers stepped in, driving the USD/JPY below 158.00, it would clear the path for further downside. The next demand zone will be the March 5 swing low of 156.46, ahead of the 50-day Simple Moving Average (SMA) at156.20, ahead of the 100-day SMA at 155.68.
USD/JPY Price Chart — Daily
USD/JPY Daily Chart
Japanese Yen Price This week
The table below shows the percentage change of Japanese Yen (JPY) against the listed major currencies this week. Japanese Yen was the strongest against the US Dollar.
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