USD/JPY Holds Tight Range Near 159.00 Before Warsh Testimony

Key Moments

Rangebound Trade Ahead of Fed Leadership Testimony

The USD/JPY pair is consolidating around 159.00 during the late Asian session on Tuesday, with price action lacking clear direction as traders look ahead to the confirmation hearing of Kevin Warsh, United States President Donald Trump’s nominee for the role of Federal Reserve Chair. The hearing is set for 14:00 GMT, and the currency pair has been confined to a narrow range in the run-up to the event.

At the time of writing, the US Dollar Index (DXY) – which measures the Greenback against a basket of six major currencies – is trading flat near 98.00, underscoring the broader lack of momentum in dollar markets.

Market attention is centered on Warsh’s remarks, as investors aim to discern whether his policy stance will lean more toward aligning with Washington’s economic priorities or emphasize maintaining the Federal Reserve’s institutional independence.

Since returning to the White House, President Trump has repeatedly criticized the Fed, and in particular current Chair Jerome Powell, for not cutting interest rates more aggressively. Warsh’s testimony is therefore seen as a key event for gauging the future policy mix and the potential degree of political influence on the central bank.

Geopolitical Backdrop: Anticipated US-Iran Talks

On the geopolitical side, Iran and the United States are expected to hold another round of talks in Islamabad during the April 22-23 period, with discussions likely to take place either on Tuesday evening or Wednesday morning. The prospect of renewed dialogue adds an additional layer of uncertainty that traders are monitoring, even as immediate market reactions remain contained.

USD/JPY Technical Picture

USD/JPY is trading flat around 159.00 at press time. For roughly a month, the pair has hovered near the 20-day exponential moving average (EMA), currently around 158.95, highlighting a persistent sideways trading pattern without a decisive breakout.

The Relative Strength Index (RSI) sits close to 50, indicating that momentum has eased into a neutral configuration rather than pointing to a strong bullish or bearish bias.

On the upside, the first notable resistance is at the March peak of 160.46. A sustained move above that threshold would likely reinforce bullish momentum and could pave the way for a test of the 2024 high at 161.95. On the downside, the April 17 low near 157.60 stands out as an important support area that traders are watching for any signs of a deeper pullback.

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

Event Focus: Fed Chair-designate Warsh Testifies

Kevin Warsh (April 13, 1970) is an American financier and attorney who has been nominated by President Donald Trump as the next Federal Reserve Chair, succeeding Jerome Powell. Warsh served as a member of the Fed Board of Governors from 2006 to 2011 and was significantly involved in the central bank’s response to the financial crisis.