The USD/JPY pair has seen a rise to 159.59, edging closer to the crucial 160.00 level, driven by strong US PMI data. Key resistance levels are seen at 160.00 and the year-to-date high of 160.32, with a potential for intervention from the Bank of Japan looming. Support levels are found at 159.00, the June 14 high of 158.25, 158.00, Tenkan-Sen at 157.69, and Senkou Span A at 157.40.
On Friday, the US Dollar gained ground against the Japanese Yen, approaching intervention levels ahead of the weekend. The stronger than expected US S&P Global Flash PMIs overshadowed weaker housing data, causing the USD/JPY pair to trade at 159.59, marking a 0.42% increase.
In terms of technical analysis, the USD/JPY has broken through the 159.00 barrier and is nearing intervention levels seen on April 29 when the pair reached 160.00. The Bank of Japan intervened in the FX market, resulting in a sharp drop to 156.06. However, the USD/JPY remains biased to the upside, with the next resistance level at 160.00 and the YTD high at 160.32.
In the event of intervention threats, the USD/JPY is likely to find support at 159.00, followed by the June 14 high at 158.25 and 158.00. Further support levels are at Tenkan-Sen at 157.69, Senkou Span A at 157.40, and Kijun-Sen at 157.11.
Overall, the USD/JPY pair has shown upward momentum, with the US Dollar strengthening against the Japanese Yen. Traders will be closely watching for potential intervention from the Bank of Japan as the pair approaches key resistance levels. Support levels are also crucial to monitor in case of a reversal in the current uptrend.
