USDJPY: Reclaims 159 but RSI Divergence Signals Potential Reversal
Over the past three trading days, USDJPY rebounded from a weekly low of 158.26 to stabilize above the 159.00 mark, closing yesterday at 159.37. The Japanese yen weakened amid Middle East geopolitical tensions, with Japan’s Finance Minister warning of possible FX intervention, contributing to market volatility. The IMF recommends Japan tighten monetary policy gradually, reinforcing uncertainty around the yen’s long-term strength. Meanwhile, the US dollar gained on solid economic data and hawkish Fed commentary. For everyday investors, this signals cautious trading around the 159 level, with a watchful eye on geopolitical headlines that could sway the yen.


