USD/JPY may see short-term bounce toward 160.00 after joint intervention

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The US Dollar rose to near 157.60 against the Japanese Yen on Tuesday as the Yen gave back some of its recent sharp gains. The pullback follows a rare joint intervention by the United States and Japan to support the Yen after it hit its weakest level since 1986. Japanese Finance Minister Satsuki Katayama said the coordinated action targeted excessive volatility and that Tokyo would not hesitate to carry out further joint intervention if needed. Investors now await the US JOLTS Job Openings data for June, expected to show 7.45 million openings, down from 7.594 million in May. From a technical perspective, USD/JPY holds a bearish near-term bias below the 20-day exponential moving average at 161.14, with a potential Head and Shoulders pattern suggesting a short-term respite toward 160.00 before further downside toward the neckline near 155.10.

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