The USD/JPY pair remains range-bound near previous highs, awaiting a directional move.
2026-06-09 13:47:51
The dollar continued its upward trend against the yen in Asian trading on Tuesday, reaching around 160.20. Escalating tensions in the Middle East supported safe-haven demand for the dollar, pushing the exchange rate higher. However, strong statements from Japanese authorities indicating their readiness to intervene to stabilize the yen limited further upside for the dollar against the yen.
Strong US jobs data bolstered the dollar. US nonfarm payrolls increased by 172,000 in May, exceeding market expectations of 85,000, marking the third consecutive month of job growth. The unemployment rate remained at 4.3%, in line with market expectations. These figures increased market expectations that the Federal Reserve will maintain a hawkish policy and may even raise interest rates further.
According to the CME Group's FedWatch tool, the market now expects a 43% probability of a 25 basis point rate hike by the Federal Reserve in December, significantly higher than 14% a month ago. This has provided short-term support for the US dollar and pushed the USD/JPY pair to remain high. Despite the dollar's support, Japanese Finance Minister Satsuki Katayama emphasized that the government's stance remains unchanged and it is ready to take decisive measures to address the yen's depreciation pressure. This has created a psychological floor for the yen in the market, which may limit further breakthroughs in the USD/JPY pair in the short term.
In summary, the USD/JPY pair is currently influenced by three factors: geopolitical risks, expectations of a Federal Reserve rate hike, and anticipated Japanese intervention, resulting in a short-term trend of volatile but slightly upward movement. Investors should pay close attention to developments in the Middle East, US employment and inflation data, and potential monetary intervention by the Japanese authorities, as these factors will determine the short-term direction of the exchange rate.
The daily chart shows that the USD/JPY pair has continued its upward trend recently, with the price stabilizing near the 160 level. The medium-term moving averages are aligned upwards, indicating short-term bullish dominance. The MACD indicator is running above the zero line, with expanding red momentum bars, showing ample upward momentum. The RSI indicator is around 65, not yet in overbought territory, suggesting further upside potential in the short term. Key resistance levels to watch are 160.50, 161.00, and 161.50, while support levels are 159.50, 159.00, and 158.50.
The 4-hour chart shows the exchange rate consolidating between 160.00 and 160.50. The MACD indicator's red bars are contracting, indicating a slight decrease in short-term upward momentum. The RSI indicator has fallen back to around 60, suggesting a cautious market. A break above the 160.50 resistance level could lead to further tests of 161.00 and 161.50; a break below the 159.50 support level could result in a pullback to the 159.00 and 158.50 areas.
Editor's Summary : The USD/JPY pair is trending slightly higher in the short term. Escalating tensions in the Middle East and strong US jobs data are supporting the dollar, while expectations of Japanese intervention are supporting the yen, limiting further upside for the exchange rate. Investors should pay close attention to US inflation and employment data, Middle East geopolitical risks, and the stance of Japanese intervention. The exchange rate is expected to fluctuate between 159.50 and 160.50 in the short term, while also monitoring potential breakout directions.
Strong US jobs data bolstered the dollar. US nonfarm payrolls increased by 172,000 in May, exceeding market expectations of 85,000, marking the third consecutive month of job growth. The unemployment rate remained at 4.3%, in line with market expectations. These figures increased market expectations that the Federal Reserve will maintain a hawkish policy and may even raise interest rates further.
According to the CME Group's FedWatch tool, the market now expects a 43% probability of a 25 basis point rate hike by the Federal Reserve in December, significantly higher than 14% a month ago. This has provided short-term support for the US dollar and pushed the USD/JPY pair to remain high. Despite the dollar's support, Japanese Finance Minister Satsuki Katayama emphasized that the government's stance remains unchanged and it is ready to take decisive measures to address the yen's depreciation pressure. This has created a psychological floor for the yen in the market, which may limit further breakthroughs in the USD/JPY pair in the short term.
In summary, the USD/JPY pair is currently influenced by three factors: geopolitical risks, expectations of a Federal Reserve rate hike, and anticipated Japanese intervention, resulting in a short-term trend of volatile but slightly upward movement. Investors should pay close attention to developments in the Middle East, US employment and inflation data, and potential monetary intervention by the Japanese authorities, as these factors will determine the short-term direction of the exchange rate.
The daily chart shows that the USD/JPY pair has continued its upward trend recently, with the price stabilizing near the 160 level. The medium-term moving averages are aligned upwards, indicating short-term bullish dominance. The MACD indicator is running above the zero line, with expanding red momentum bars, showing ample upward momentum. The RSI indicator is around 65, not yet in overbought territory, suggesting further upside potential in the short term. Key resistance levels to watch are 160.50, 161.00, and 161.50, while support levels are 159.50, 159.00, and 158.50.
The 4-hour chart shows the exchange rate consolidating between 160.00 and 160.50. The MACD indicator's red bars are contracting, indicating a slight decrease in short-term upward momentum. The RSI indicator has fallen back to around 60, suggesting a cautious market. A break above the 160.50 resistance level could lead to further tests of 161.00 and 161.50; a break below the 159.50 support level could result in a pullback to the 159.00 and 158.50 areas.
Editor's Summary : The USD/JPY pair is trending slightly higher in the short term. Escalating tensions in the Middle East and strong US jobs data are supporting the dollar, while expectations of Japanese intervention are supporting the yen, limiting further upside for the exchange rate. Investors should pay close attention to US inflation and employment data, Middle East geopolitical risks, and the stance of Japanese intervention. The exchange rate is expected to fluctuate between 159.50 and 160.50 in the short term, while also monitoring potential breakout directions.
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- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
