USD/JPY Rebounds, But Not Out of the Woods Yet
The USD/JPY pair climbed back above the 160.50 level during Asian trading on Friday (July 31). This rebound followed a dip below 158.00—its lowest level since mid-May—and was driven by a strengthening US dollar and position adjustments ahead of the Bank of Japan's (BOJ) interest rate decision. Investors remain cautious, as BOJ policy moves could trigger sharp volatility in the yen.
From a technical perspective, the rise above the psychological 160.00 level opens the door for further gains. However, downward pressure persists, with RSI and MACD indicators suggesting that bearish momentum has not yet fully dissipated.
The 160.99–162.69 range is expected to act as a zone of strong resistance. USD/JPY needs to break through this area to pave the way for a return to previous highs near 163.97.
Conversely, if the pair falls back below 160.28, selling pressure could intensify, pushing the price toward 159.41 and 158.00. A decisive break below 158.00 could extend the correction, which was previously suspected to have been triggered by Japanese intervention. (asd)
Source: Newsmaker.id
