USD/JPY is seen as having a slight buying bias, with the battle around ¥160 attracting attention. The focus is on whether the pair can break out of the move that capped its upside the previous day, with short-term targets being identified one after another.
Technical EYE sees USD/JPY as currently having a slight buying bias and points to the battle around the key 160.00 level as crucial to the pair’s subsequent direction. The pair broke above the Ichimoku Cloud’s baseline at one point the previous day, and the slight buying bias is expected to continue.
A break above the key 160.00 level would put the 21-day moving average at 160.13, the key 161.00 level and then the upper boundary of the Ichimoku Cloud at 161.41 in view as the next targets. If a break above the cloud is confirmed, the pair could be set to target 162.00.
If selling leads in the alternative scenario, the low around 158.60 will become important. A break below that level would bring the 200-day moving average at 158.30 and the key 158.00 level into view. A break below ¥158 could see the pair test 157.00, 156.68 and then 156.00.