• USD/JPY advances towards 160.00 for the second time in 2024.
• Momentum favors buyers with a bullish RSI, but risks of downward pressure remain.
• Key resistance levels are 160.00, YTD high at 160.32, further gains at 160.50 and 161.00.
• Key support levels are the day's low at 158.75, Tenkan-Sen at 157.82, Senkou Span A at 157.53, and Kijun-Sen at 157.24.

The USD/JPY is flat but advanced steadily towards the 160.00 figure for the second time in 2024 and hit a two-month high of 159.93 before trimming some of earlier gains. The pair trades at 159.65, down some 0.10%, amid Japanese authority's verbal intervention.

USD/JPY Price Analysis: Technical outlook

The USD/JPY has managed to climb back above 159.00, even though traders were reluctant to re-test the Bank of Japan’s (BoJ) patience of intervening in the FX space to tame the Japanese Yen (JPY) depreciation.

Momentum favors buyers, with the Relatives Strength Index (RSI) remaining bullish, but downward risks remain. If the USD/JPY clears the psychological 160.00 mark, the next resistance would be the year-to-date (YTD) high of 160.32. Further gains are seen above 160.50 and at 161.00.

On the other hand, if USD/JPY drops below the day's low of 158.75, that could pave the way for testing key support levels. Up next would be the Tenkan-Sen at 157.82, followed by the Senkou Span A at 157.53, ahead of the Kijun-Sen at 157.24.

USD/JPY Price Action – Daily Chart