USD/JPY Price Forecast: Reclaims 158.00 as bulls target intervention area
USD/JPY rallies past the 158.00 figure and also above the 20-day Simple Moving Average of 158.23, up by over 0.32% on Thursday as buyers target the 50-day SMA at 158.75 as the next key resistance.
USD/JPY Price Forecast: Technical outlook
Price action shows that buyers are moving in, as USD/JPY printed a higher high over the last four trading days, clearing the path to reclaim 158.00. Momentum is bullish, as seen in the Relative Strength Index (RSI), which has cleared the 50-neutral level, an indication that buyers are gaining steam.
On the upside, the next resistance is the 50-day SMA, which lies ahead of the 159.00 figure. Traders should be aware that the pair is near the Japanese authorities' intervention zone, so a move within the 159.00-160.00 area would open the door for renewed action by the Bank of Japan (BoJ).
Downwards, if USD/JPY drops below 158.00, this clears the path to challenge the 100-day SMA at 157.43. On further weakness, the 157.00 milestone emerges as the next key support, followed by the May 6 cycle low of 155.03.
USD/JPY Price Chart – Daily
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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