USD/JPY trades around 159.40 on Wednesday, holding onto modest gains as a firmer US Dollar (USD) keeps the pair underpinned. The Dollar is broadly bid ahead of the Jackson Hole Symposium.

Reports of a United States (US)-Iran ceasefire that would reopen the Strait of Hormuz have trimmed demand for traditional safe havens, weighing on Gold and sapping some of the Japanese Yen’s (JPY) appeal even as broader sentiment stays cautious pending confirmation of the deal.

The Yen’s immediate focus is Tokyo’s August inflation report, due on Thursday. Both the headline Tokyo Consumer Price Index (CPI) and the measure excluding food and energy are expected to hold around 2% year on year.

Short-term technical analysis:

In the 4-hour chart, USD/JPY trades at 159.33, holding a constructive bullish tone as it stands above both the 20-period Simple Moving Average (SMA) at 159.16 and the 100-period SMA at 158.86. The cluster of nearby supports around 159.16–159.26 cushions the pair after this week’s advance, while the Relative Strength Index (RSI) near 56 reinforces steady upward momentum without yet signaling overbought conditions.

On the topside, immediate resistance appears at 159.37, followed by the recent horizontal cap at 159.43, where buyers may pause or trim exposure. On the downside, initial support is seen at the horizontal level of 159.26, ahead of the 159.16 floor that aligns with the 20-period SMA, while deeper demand is suggested by the 100-period SMA at 158.86 should corrective pullbacks extend.

(The technical analysis of this story was written with the help of an AI tool. Know more.)