Treasury Secretary Bessent said that
- G7 finance meeting talks were constructive,
- He is confident the Bank of Japan Gov. Ueda will successfully guide monetary policy.
- He added that “excess” volatility in the Forex market is undesirable.
- He feels that the fundamentals of the Japanese economy are strong
The initial reaction has seen the USDJPY move lower after the pair pushed above the 159.00 midpoint of the broader 158.00–160.00 trading range that confined price action from early March through the end of April. That break higher kept buyers in control short term, but the move is now being tested.
On the downside, the first key target comes in near 158.60 — the low from the North American session yesterday at 158.599. Just below that, the rising 100-hour moving average comes in at 158.478. Those two levels are now important barometers for the pair. A move below them would give sellers more confidence and shift control more toward the downside.
The broader trend over the past few weeks has still favored buyers. After the sharp break lower on April 30 tied to fears of FX intervention, the pair found support near 155.50 before extending to a new low around 155.00 on May 6. Since that low, USDJPY has been climbing steadily higher, with only modest corrective pullbacks along the way.
Momentum strengthened again last Thursday when the pair moved back above 158.00. Buyers then pushed the price through 159.00 during trading yesterday and again today, extending the upside recovery.
For traders now, the key levels are clear:
- Support: 158.60 followed by the rising 100-hour moving average at 158.48
- Resistance/Key upside barometer: 159.00
Stay above 159.00 and buyers remain in firm control. Move back below 158.60 and especially the 100-hour moving average, and sellers may start to regain momentum.
