USDJPY – Bulls Target 160 Level

USDJPY maintains a strong tone, staying just below its new multi-month high early Wednesday, with near-term focus on the upside after recent consolidation faced multiple downside rejections.

The fundamentals continue to favor the dollar, as the Bank of Japan is expected to keep rates steady during its policy meeting later this month. Meanwhile, the US economy remains strong and is projected to show further growth after the transition to the Trump administration.

US December labor reports are anticipated to be robust, with the JOLTS report (released Tuesday) showing better-than-expected results. Attention is on today’s ADP private sector payrolls and Friday’s Non-Farm Payrolls, unemployment data, and average earnings, which could further support the dollar.

The technical outlook on the daily chart is firmly bullish, supporting a push toward the psychological 160 barrier and the recent high at 161.95.

However, the potential for intervention by Japanese authorities in this zone should be considered, following similar actions in July of last year.

The rising 10-day moving average provides immediate support at 157.56, followed by more significant support around the 156 zone (higher base / rising 20DMA), which should ideally contain any dips.

Res: 158.42; 159.00; 160.00; 160.19
Sup: 157.56; 156.24; 155.96; 154.18