USD\/JPY slipped from Tuesday\u2019s over one-week high near 159.70 and traded around 159.00 in early European hours. The move followed softer demand for the US Dollar after a temporary extension of the US-Iran ceasefire.<\/p>\n
Downside appeared limited as worries linked to a standoff over the Strait of Hormuz and expectations for a delayed Bank of Japan rate rise weighed on the Japanese Yen. These factors helped keep the pair supported above 159.00.<\/p>\n
On the 1-hour chart, price held above the 23.6% Fibonacci retracement of the rise from last week\u2019s swing low near 157.60 and rebounded from the 100-period EMA. The MACD edged slightly below zero and the RSI near 48 pointed to neutral to mildly weaker momentum.<\/p>\n
Near-term support was cited at the 23.6% retracement around 159.15 and the 100-period EMA at 159.07. Further supports were listed at 158.85 (38.2%), then 158.60, 158.36 and 158.01, with the 157.57 swing low as a deeper floor.<\/p>\n
The recent dip towards 159.00 appears driven by short-term profit-taking on news of a US-Iran ceasefire extension. We see this pullback as a potential opportunity rather than a change in the underlying trend. This gives traders a chance to position for the next move higher.<\/p>\n
The fundamental picture strongly supports a higher USD\/JPY, as the interest rate gap remains wide. With US inflation data from March still hot at 3.5%, the Federal Reserve has no reason to cut rates soon. Meanwhile, the Bank of Japan’s latest Tankan survey shows wavering business confidence, suggesting any further rate hikes are a long way off.<\/p>\n
We recall the consolidation we saw around the 152.00 level for several weeks in early 2025 before the next major leg up. The current support around 159.00 could act as a similar launchpad for a move towards the 160.00 psychological barrier. This historical pattern suggests patience during these minor dips.<\/p>\n
For traders expecting a rebound, buying call options with strikes above 160.00 for the coming weeks looks attractive. This strategy limits downside risk if the support at 159.00 fails unexpectedly. It allows us to capture upside momentum if the pair resumes its climb.<\/p>\n
Given the solid support layers down to 158.60, selling put options below these levels could be a viable strategy to collect premium. With one-month implied volatility holding around 8.5%, the premium received offers a decent buffer. This profits from both a rising price and time decay, as long as the key support holds.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" USD\/JPY eases from 159.70 toward 159.00 as dollar demand softens; yen capped by BoJ delay.<\/p>\n","protected":false},"author":103,"featured_media":17042,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-48345","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t