USD/JPY Edged Above 158.00 Before Weaker Retail Sales, Ends Just Below

USD/JPY ended Tuesday trading up 0.08% at 157.86, with gains driven by bullish momentum indicators and trading above key moving averages, despite fears of Japanese intervention. The pair reached a daily high above 158.00, maintaining its uptrend.

• The USD/JPY traded between 157.50 - 158.20 area heading into the US session on Tuesday. The trend signal in USD/JPY remains bullish, with initial resistance at 158.26 (June 17 high) and further resistance at 158.44 (April 26 peak). The pair trades well above initial support at 157.00.
• The pair's bullish momentum is underscored by the RSI at 60, which shows positive momentum. However, caution prevails among buyers due to potential Japanese intervention.
• The Japanese yen was the worst performer among G10 currencies, influenced by broader market dynamics and US economic factors. Analysts expect continued volatility as traders react to upcoming US and Japanese economic data and policy announcements.
• Bank of Japan Governor Kazuo Ueda indicated that the reduction in bond buying and a policy rate hike are separate issues, while addressing questions in parliament.
• Expiries include 157.00 ($2.04b), 135.50 ($1.97b), 151.50 ($1.73b), while upcoming notable expiries are; 155.00 ($831.2m), 137.69 ($344m), 156.00 ($310.3m)
• Today, the data calendar includes Trade Balance data and BoJ Minutes of the April Meeting at 9:50 AEST, and a 12-month bill auction at 1:30 pm AEST.