fxs_header_sponsor_anchor

News

USD/JPY Price Analysis: Pulls back from 11-month high near 149.50

  • USD/JPY retreats with a positive bias, holding grounds below 149.50.
  • Momentum indicators point toward a prevailing bullish sentiment in the market.
  • The psychological level at 150.00 could emerge as a key resistance, following October’s high.

USD/JPY retreats with a positive bias from the highs since November, trading lower around 149.40 during the Asian session on Thursday. The pair experiences upward support due to market caution about the US Federal Reserve’s (Fed) interest rate trajectory, coupled with higher US Treasury yields and economic data.

However, Japanese Finance Minister Shunichi Suzuki reaffirmed on Thursday that he is open to taking any necessary measures to address excessive foreign exchange (FX) market volatility. Suzuki also emphasizes that currencies move in a stable manner. The policymaker is closely watching FX moves with a sense of urgency, although declined to comment on any plans for a rate check.

The current upward momentum in USD/JPY appears to have a potential bullish bias, given that the 14-day Relative Strength Index (RSI) remains above the 50 level. However, there is a psychological resistance level at 150.00 that may pose a challenge for further gains.

If there's a strong breakthrough above the level, it could serve as an encouragement for USD/JPY bulls to explore higher levels, potentially targeting the area around the October high at 151.94.

On the flip side, the USD/JPY pair may encounter significant support levels in its price movement. The first notable support level could be around the 14-day Exponential Moving Average (EMA) at 148.27. Below that, there is the psychological support level at 148.00, which often holds significance in market dynamics.

If the pair breaks below the latter, it may then navigate towards the region around the psychological support level at 147.00, followed by the 23.6% Fibonacci retracement at 146.76.

The Moving Average Convergence Divergence (MACD) indicator is providing a bullish signal for the USD/JPY pair. The MACD line is positioned above both the centerline and the signal line. This configuration suggests that there is potentially strong momentum in the USD/JPY's price movement, indicating a prevailing bullish sentiment in the market.

USD/JPY: Daily Chart

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.