US Dollar Crawls Towards Key 160.00 Area Against Yen

The US Dollar continued its upward trend against the Japanese Yen on Tuesday, reaching session highs above 153.30. Despite market volatility remaining low, investors are eagerly awaiting key macroeconomic events in the second half of the week.

According to technical analysis, the moderate bullish pressure is aiming for the 160.00 area, with the USD/JPY pair extending gains to levels past 159.30 at the European session opening. The Japanese Yen remains on the defensive against the US Dollar, with investors' fears about another intervention limiting Yen dips.

The mix of concerns about Japan's fiscal stability and the gap between the interest rates of the Bank of Japan (BoJ) and those of the rest of the major central banks is proving a strong headwind for Yen appreciation. Markets are awaiting the release of US Personal Consumption Expenditures (PCE) Price Index figures on Wednesday and Federal Reserve Chairman Kevin Warsh's speech at Jackson Hole on Friday.

The technical picture shows moderate bullish pressure, with momentum indicators in the 4-hour chart suggesting that bulls are in control. Initial resistance is seen in the area between the August 18 high of 159.75 and the 160.00 level, considered a potential trigger for a Tokyo intervention.