USD/JPY Price Forecast: Remains confined around 159.00 as Warsh hearing looms

• USD/JPY trades sideways around 159.00 as investors await Kevin Warsh’s confirmation hearing.
• The US and Iran are expected to have another round of talks in the April 22-23 period.
• The pair remains rangebound for a month, wobbles around THE 20-day EMA.

The USD/JPY pair consolidates around 159.00 during the late Asian trading session on Tuesday. The major struggles for a direction as investors await commentary from United States (US) President Donald Trump’s nominee Kevin Warsh for the Federal Reserve’s (Fed) new chairman in his confirmation hearing at 14:00 GMT.

During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades flat around 98.00.

Investors would keenly focus on Warsh’s comments to gauge whether his decisions during his term will be biased towards Washington’s economic agenda or towards preserving the Fed’s independence.

Since US President Trump’s return to the White House, he has criticized the Fed, especially Chairman Jerome Powell, several times for not reducing interest rates aggressively.

On the geopolitical front, Iran and the US will likely have another round of talks in Islamabad either on Tuesday evening or Wednesday morning.

USD/JPY technical analysis

USD/JPY trades flat at around 159.00 at the press time. The price has been stuck near the 20-day exponential moving average (EMA) at around 158.95 for a month, indicating a sideways trend.

The Relative Strength Index (RSI) around 50 suggests momentum has normalized into a neutral stance rather than signaling strong directional conviction.

On the topside, immediate resistance is located at the March high of 160.46, and a sustained break above this level would strengthen the pair to extend its upside towards the 2024 year of 161.95. Looking down, the April 17 low around 157.60 is the key support level.

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