- March 25, 2026
- Posted by: EWGFX
- Category: news
USD/JPY edges higher as economic concerns counter hawkish BoJ minutes and undermine the JPY.
Geopolitical tensions continue to act as a tailwind for the USD and further support spot prices.
The technical setup favors bullish traders and backs the case for a further near-term appreciation.
The USD/JPY pair trades with a positive bias for the second straight day on Wednesday, though it lacks bullish conviction and remains below the 159.00 mark through the Asian session.
Minutes from the Bank of Japan’s (BoJ) January meeting showed that policymakers saw the need to keep raising interest rates. The Japanese Yen (JPY), however, struggles to attract any meaningful buyers and remains depressed amid concerns that the war-driven surge in energy prices could weaken Japan’s economic growth. Furthermore, geopolitical uncertainties continue to benefit the US Dollar’s (USD) reserve currency status and act as a tailwind for the USD/JPY pair.
From a technical perspective, the near-term bias is neutral with a slight bullish tilt as spot prices hold comfortably above the 100-period Exponential Moving Average (EMA) on the 4-hour chart. This keeps the broader uptrend structure intact despite recent hesitation below the 159.80 region. The Moving Average Convergence Divergence (MACD) indicator hovers close to the zero line with its line marginally above the signal line, hinting at modest but fragile upside momentum.
Meanwhile, the Relative Strength Index (RSI) around 50 reinforces a range-bound tone, suggesting balanced forces after last week’s swing lower from the 159.80 area. Hence, any subsequent move up might confront immediate resistance near 159.30, followed by 159.80, the recent cap that guards a potential extension toward the 160.50 zone. A sustained break above 159.80 would reassert bullish control within the medium-term uptrend.
n the downside, initial support emerges at the 158.30 area where the 100-period EMA on the 4-hour chart adds technical weight, with a deeper floor at 157.90 if sellers extend control. A drop below the latter would shift focus toward a corrective phase and expose last week’s swing low near mid-157.00s.