The USD/JPY advances steadily on Tuesday as market participants brace for the Federal Reserve’s monetary policy decision, as the meeting kicked off during the day. At the time of writing, the pair trades at 160.47, within the intervention zone.
USD/JPY Price Forecast: Technical outlook
The USD/JPY has bounced off 159.50 since last week, but it has failed to gain traction amid investor fears of a potential Japanese FX market intervention. From a momentum standpoint, the uptrend should continue as the Relative Strength Index (RSI) is bullish.
Worth noting that the Bank of Japan (BoJ) raised interest rates on Tuesday by 25 basis points to 1% as expected, but the Yen failed to appreciate due to an improvement in risk appetite.
On the upside, the first resistance for USD/JPY is 160.50. A breach of the latter will expose the year-to-date (YTD) high of 160.73 ahead of the 161.00 milestone.
Conversely, if USD/JPY dives below 160.00, the first support would be psychological 159.50, ahead of challenging the 50-day Simple Moving Average (SMA) at 159.00. Below this level, the next support is the 100-day SMA at 158.02.
USD/JPY Price Chart – Daily
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