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FxWirePro: USD/JPY remains buoyant, looks to extend gains

 • USD/JPY   strengthened  on Monday  as a surge in oil prices  driven by the escalating U.S.-Israeli war with Iran  stoked inflation fears and pressured the yen.

• Japan is particularly vulnerable because it relies heavily on Middle Eastern energy imports, while the United States is far less dependent.

  • Markets remain volatile, with some analysts warning of potential stagflation risks in Japan, even though recent data has been relatively strong.

• Recent economic indicators show Japanese wages increased in January, large pay hikes are expected in April, and bank lending continued to rise in February, suggesting underlying economic momentum despite rising risks.
 
• Immediate resistance is located at 159.21(23.6%fib), any close above will push the pair towards 160.00(Psychological level).

•  Support is seen at 158.41(Daily low) and break below could take the pair towards 156.70 (38.2%fib)

Recommendation: Good to buy around 158.40, with stop loss of 157.50 and target price of 159.50

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