USD/JPY Consolidation Ahead as Market Waits for Next Catalyst
The USD/JPY currency pair has seen modest gains of 0.08% on Wednesday, following US inflation data that reduced expectations for a Federal Reserve rate hike at the October 28 meeting.
At present, the pair trades at 157.42. The market is neutral to downward-biased after recent interventions by both US and Japanese authorities pushed the pair from around 160.00 to 153.00 before some ground was recovered to the current exchange rate.
Momentum had favored buyers, but sellers have since stepped in as the Relative Strength Index (RSI) peaked at 60 before reversing to the 50-neutral level, indicating further consolidation ahead.
For a bullish continuation, USD/JPY must climb above the 50-day Simple Moving Average (SMA) at 158.28. Above this lies resistance at 159.00, followed by the 100-day SMA at 159.57 and then 160.00.