USD/JPY Stays Below 162.40 Resistance on Middle East Tensions, BoJ Dovishness
The US dollar strengthens for a fourth straight session against the Japanese yen, with gains capped below the 162.40 resistance level as resurgent Middle East hostilities and dovish Bank of Japan remarks support the greenback.
The USD/JPY pair extends its winning streak to four days on Wednesday, with the dollar struggling to break above the key 162.40 resistance zone. The greenback finds support from renewed geopolitical tensions in the Middle East and the Bank of Japan's dovish policy stance.
The resumption of hostilities in the region has boosted safe-haven demand for the US dollar, while BoJ officials' comments suggesting a continued accommodative monetary policy weigh on the yen. However, the 162.40 level acts as a formidable barrier, capping further upside for now.
Traders await further catalysts to determine whether the pair can break resistance or if a pullback is due.
Source: FXStreet Forex News