The USD/JPY pair climbed to 160.89, up 0.08%, supported by strong US data and rising Treasury yields. Technical analysis indicates buyer momentum, with the RSI overbought but not at extreme levels. Resistance levels for the pair are at 161.00, 162.00, 164.87 (Nov 1986 high), and 178 (Apr 1986 high). On the downside, support levels are found at 159.19 (Tenkan-Sen), 158.75 (June 24 low), 158.65 (Senkou Span A), and 157.91 (Kijun-Sen).
The USD/JPY continued its upward trend on Friday and is poised to finish the week with over 0.50% gains, driven by positive US economic data and a surge in Treasury yields. Despite speculation about potential rate cuts by the US central bank in 2024, the pair is trading at 160.89, up 0.08%.
The uptrend in the USD/JPY remains intact, although caution is advised after surpassing the psychological level of 160.00, which could trigger intervention by Japanese authorities in the foreign exchange markets. Despite this, the pair has been steadily advancing, increasing the risk of intervention.
Buyers maintain momentum in the market, even though the RSI is overbought. However, with the strong uptrend, many analysts consider 80 as the threshold for “extreme” overbought conditions.
Key resistance levels for the USD/JPY include 161.00, 162.00, and the November 1986 high of 164.87. If the pair drops below 160.00, support levels to watch are at 159.19 (Tenkan-Sen), 158.75 (June 24 low), 158.65 (Senkou Span A), and 157.91 (Kijun-Sen).
Overall, the USD/JPY price action indicates a positive trend, with technical analysis pointing towards further upside potential in the near term.