The currency pair remains near a one-month high despite profit-taking and concerns over potential Japanese authorities’ intervention.
The USD/JPY pair edged lower during Thursday’s Asian session, pressured by fears of Japanese authorities intervening to support the yen. Profit-taking on the US dollar following an Israel-Lebanon truce also contributed to the decline, though spot prices stayed close to the 160.00 mark, a psychological threshold and one-month high reached earlier in the day.
Geopolitical tensions in the Middle East and uncertainty over US-Iran peace talks have tempered aggressive yen buying. Meanwhile, hawkish expectations for the US Federal Reserve continue to underpin the dollar, capping losses for the pair. Technical indicators suggest a modest bullish bias, with the Relative Strength Index above the midline and the pair trading within an upward-sloping channel.
Support near 159.45 remains critical, with a break below potentially triggering further selling. However, momentum indicators point to a slower advance rather than a sharp reversal, leaving the near-term outlook tilted toward buyers.