Japan’s verbal warnings and subdued USD demand cap gains, but Fed hawkishness and geopolitical risks limit JPY strength.
The USD/JPY pair consolidates near a one-month high below 160.00, pressured by Japan’s verbal intervention threats and a muted US Dollar. The yen finds modest support, though Middle East tensions and the Strait of Hormuz closure curb aggressive bets.
Technical indicators favor bulls, with the pair breaching the 78.6% Fibonacci retracement level and holding above the 200-day EMA. The RSI at 61 signals firm upside momentum, while the MACD remains positive, suggesting buyers retain control.
Resistance lies at 160.78, a break above which could open fresh highs. Downside support is eyed at lower levels, though Fed policy expectations and safe-haven USD demand may limit declines.