USD/JPY stays underpinned for now with watchful eyes on 155 mark – ForexLive

Despite yesterday’s drop in US Treasury yields, it did little to spook USD/JPY price movements. The pair remains supported, but buyers have not mustered enough courage to take things further. For now, even after all the verbal intervention from the Japanese authorities, the 155.00 hurdle remains a step too far. But still, the chart shows that buyers remain poised and in control in the near term.

USD/JPY hourly chart

The consolidation mood just below 155.00 is reminiscent of when the price trend remained just below the 152.00 mark for about two weeks. What traders need is some form of impetus or trigger point to actually strengthen the rationale for the next higher leg of the pair.

That said, keep in mind that with each step we are surely pushing the threshold for Tokyo intervention.

For now, the short-term chart above shows that buyers are still in control. This is seen as price holding just above 154.00 and also defending the 100 hourly moving average (red line).

However, it takes a lot of nerve to approach 155.00 at this stage if there is no real trigger point. Therefore, the pair is likely to be stuck within this range for quite some time over the next week or so.