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USD/JPY inches toward 160 as investors await US and Jackson Hole cues
The pair last traded around 159.3, and traders are watching for signals from a Wednesday US PCE release and a Jackson Hole speech on Friday.
The Japanese yen remained on the defensive against the US dollar on Tuesday, with USD/JPY extending gains to the 159.30s and moving closer to the key 160.00 level, according to FXStreet.
FXStreet said the yen’s slide is supported by concerns about Japan’s fiscal stability and the interest-rate gap between the Bank of Japan and other major central banks. It also noted that fears of another yen intervention have helped limit the depth of yen dips.
Markets are keeping volatility relatively low as traders look ahead to US Personal Consumption Expenditures, due on Wednesday, and Federal Reserve Chairman Kevin Warsh’s speech at Jackson Hole on Friday. The focus will include how US Treasury bond repurchasing plans could affect monetary policy and Warsh’s stance on fighting above-target inflation.
On the technical side, FXStreet pointed to higher lows and higher highs since USD/JPY bottomed near 155.20 in early August, with the 4-hour Relative Strength Index (14) around 58 and a MACD histogram showing widening green bars. It flagged resistance near the August 18 high around 159.75 into 160.00, and said a downside test would start around the June 19 low of 158.10 before lower levels near 156.70 and 155.23.
Latest closeUSD/JPY 159.31 ▼0.1%