USD/JPY Price Analysis: Hits 38-year high at around 160.80s

USD/JPY reaches multi-year peak at 160.83, surpassing key 160.00 level amid USD strength.
Technicals show strong uptrend with overbought RSI, buying momentum strong.
Resistance levels: 161.00, 162.00, 164.87 (Nov 1986 high), 178 (Apr 1986 high).
Support found at 158.75 (June 24 low), Tenkan-Sen at 157.82, Senkou Span A at 157.53, Kijun-Sen at 157.24.

Christian Borjon Valencia FXStreet

The USD/JPY rallied sharply during Wednesday’s session after the pair hit a 38-year high past the 160.00 psychological figure, seen as the line of the sand for Japanese authorities and the Japanese Yen to intervene in the FX space. Nevertheless, failure to do it prompted US dollar bulls to push the exchange rate higher, and at the time of writing, the pair traded at 160.83, which was up 0.73%.

USD/JPY Price Analysis: Technical outlook

The USD/JPY is upward biased and extended its gains past the psychological 160.00 barrier for the second time since April 29, when the pair printed a year-to-date (YTD) high of 160.32. This has reignited fears that Japanese authorities or the Bank of Japan (BoJ) could step into the plate to halt Yen’s depreciation.

Momentum favors buyers, with the Relative Strength Index (RSI) at overbought conditions. However, due to the strength of the uptrend, most technicians use 80 as “extreme” overextended conditions.

The next resistance would be the psychological levels of 161.00, 162.00, and so forth, ahead of testing November’s 1986 high of 164.87, followed by April's 1986 high of 178.

Conversely, if USD/JPY drops below 160.00, the first support would be June’s 24 low of 158.75, followed by the Tenkan-Sen at 157.82. Once those levels are cleared, the next stop would be the Senkou Span A at 157.53, and then the Kijun-Sen at 157.24.

USD/JPY Price Action – Daily Chart

USD/JPY

Overview
Today last price	160.8
Today Daily Change	1.12
Today Daily Change %	0.70
Today daily open	159.68

Trends
Daily SMA20	157.41
Daily SMA50	156.35
Daily SMA100	153.45
Daily SMA200	150.47

Levels
Previous Daily High	159.76
Previous Daily Low	159.19
Previous Weekly High	159.84
Previous Weekly Low	157.16
Previous Monthly High	157.99
Previous Monthly Low	151.86
Daily Fibonacci 38.2%	159.54
Daily Fibonacci 61.8%	159.41
Daily Pivot Point S1	159.32
Daily Pivot Point S2	158.97
Daily Pivot Point S3	158.76
Daily Pivot Point R1	159.89
Daily Pivot Point R2	160.11
Daily Pivot Point R3	160.46

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold surrenders some gains, back below $5,000

Gold is giving away part of its earlier gains on Thursday, receding to the sub-$5,000 region per troy ounce. The precious metal is finding support from renewed geopolitical tensions in the Middle East and declining US Treasury yields across the curve in a context of further advance in the Greenback.

XRP edges lower as SG-FORGE integrates EUR stablecoin on XRP Ledger

Ripple’s (XRP) outlook remains weak, as headwinds spark declines toward the $1.40 psychological support at the time of writing on Thursday.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.