The USD/JPY pair rose by 0.14% on Wednesday, bouncing back from a low of 160.77. Traders are speculating that the Federal Reserve may cut rates in 2024, following disappointing data released during the day. Currently, the pair is trading at 161.62.
The uptrend in the USD/JPY pair remains strong, with concerns rising about potential intervention by Japanese authorities or the Bank of Japan in the foreign exchange markets. The pair continues to climb steadily, reaching multi-year highs, with buyers aiming to test the psychological level of 162.00.
The Relative Strength Index (RSI) indicates momentum favoring buyers, remaining overbought without showing signs of a downward trend. As a result, the path of least resistance for the USD/JPY pair seems to be towards the upside.
Key resistance levels include 161.95 (July 3 high), 162.00, and a challenging high from November 1986 at 164.87. On the other hand, support levels are at 161.00, 160.35 (Tenkan-Sen), 159.30 (Senkou Span A), and 158.25 (Kijun-Sen).
Overall, the USD/JPY pair shows a positive technical outlook with the potential for further upside movement.