Home›Forex›Major Pairs›USD/JPY eyes a push toward 164.00 as yen weakens near…

USD/JPY eyes a push toward 164.00 as yen weakens near multi-decade highs

Yen weakness is linked to higher oil prices after global supply risks rose with the Bab el-Mandeb Strait closure, while traders also look ahead to Japan’s June CPI data on Friday.

Reported · Written up by our desk · Major Pairs

USD/JPY is hovering near multi-decade highs around 163.24 early Wednesday, extending a rally with the Japanese yen underperforming against the US dollar, according to an FXStreet technical and macro check.

The dollar strength is tied to surging oil prices, which FXStreet says reflect escalating global energy supply risks after the Bab el-Mandeb Strait was closed by Yemen’s Iran-aligned Houthis. Higher oil prices tend to weigh on energy-import-reliant economies like Japan, adding pressure to the yen.

FXStreet also points to expectations of possible Japanese intervention after yen weakness, citing remarks from Japan’s Finance Minister Satsuki Katayama that authorities will take necessary steps in foreign exchange if needed, though she did not comment on specific FX levels.

On the technical front, USD/JPY trades around 163.20, with a bullish near-term setup supported by a rising 20-day EMA near 162.15 and reclaimed support around 162.16. The outlet notes RSI(14) at 65.9 and a rising wedge pattern that could later turn bearish, while upside room could open toward 164.00 if USD/JPY clears resistance near 163.50, before any deeper pullback that could find support around 162.15 to 162.16.

Latest closeUSD/JPY 162.33 ▲0.2%

More like this

Sources