The currency pair trades around 159.75 as Middle East tensions weigh on the yen but intervention risks limit further gains.
The USD/JPY pair remains near a one-month high, trading around 159.70-159.75 during Tuesday’s European session. Geopolitical concerns in the Middle East continue to pressure the Japanese yen, supporting the pair’s upward momentum.
Recent price action saw the pair breach the 61.8% Fibonacci retracement level of its April-May decline, reinforcing bullish sentiment. Technical indicators, including a positive MACD and RSI near 60, suggest further upside potential, though resistance at 160.70 remains a key hurdle.
Speculation over potential Japanese authorities’ intervention to support the yen tempers aggressive bets, while a partial ceasefire in the Middle East eases demand for the USD as a safe haven. Downside support is seen at the 78.6% Fibonacci retracement level.