The USD/JPY pair continued its steady ascent on Tuesday, with market participants closely monitoring the Federal Reserve’s latest monetary policy meeting. Currently trading around 160.47, the pair is operating within a zone where the risk of Japanese government intervention is high.
Technical Analysis and Outlook
Since last week, USD/JPY has found consistent support at the 159.50 level. While the pair has struggled to gain significant momentum due to concerns over potential FX market intervention by Japanese authorities, the overall technical trend remains positive, supported by a bullish Relative Strength Index (RSI).
Notably, the Bank of Japan (BoJ) raised interest rates by 25 basis points to 1% on Tuesday. Despite this expected move, the Yen failed to strengthen as an overall improvement in global risk appetite outweighed the impact of the rate hike.
Looking ahead, the immediate resistance for USD/JPY sits at 160.50. A break above this level could propel the pair toward its year-to-date high of 160.73, with the 161.00 milestone serving as the next major target.
On the downside, a drop below 160.00 would shift focus to the psychological support at 159.50. If that fails, the pair may test the 50-day Simple Moving Average (SMA) at 159.00, followed by the 100-day SMA at 158.02.
USD/JPY Price Chart – Daily
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