USD/JPY rally extends for the seventh straight day, up 0.10% to a 12-day high of 159.25, despite growing fears of Japanese authorities intervening in FX markets. At the time of writing, the pair trades near 159.00.
USD/JPY Price Forecast: Technical outlook
Despite recovering, USD/JPY is poised to consolidate, capped by the line in the sand “intervention zone” around 159.00-160.00, which opens the door for sellers to step in and push the pair lower.
Momentum is bullish as depicted by the Relative Strength Index (RSI) an indication that further upside is seen.
If USD/JPY clears the April 29 daily low-turned-resistance at 159.52, traders can challenge the 160.00 mark. On further strength, the next resistance is the yearly high at 160.72.
Conversely, if USD/JPY slides past the 159.00 mark, it clears the path to the next area of interest, being the 50-day SMA at 158.80, followed by the 20-day SMA at 158.23. If those levels are taken out, the next stop would be 158.00, followed by the 100-day SMA at 157.49.
USD/JPY Price Chart – Daily
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