• USD/JPY remains subdued around the 144.40-80 area as traders brace for the weekend.
  • The interest rates differential, and central bank monetary policy divergence, are tailwinds for the USD/JPY.

The USD/JPY consolidates in the 144.00-145.00 area following last week’s Bank of Japan (BoJ) intervention, which had kept the major directionless, as traders remain on the sidelines. Despite the solid correlation with the US 10-year T-bond yield, piercing the 4% threshold during the week, the USD/JPY did not attempt to clear the 145.00 figure. At the time of writing, the USD/JPY is trading at 144.70, above its opening price.

USD/JPY Price Analysis: Technical outlook

Given the backdrop that, fundamentally speaking, the interest rates differential between both economies, the central bank divergency with the Bank of Japan’s dovish stance is a tailwind for the USD/JPY.

From a technical analysis perspective, the USD/JPY is range-bound, though it remains upward biased, based on where the daily moving averages (DMAs) are located. During the week, the USD/JPY trading range has been the 143.50-144.90 area, so any breaks below would likely send the major towards the 140.00 figure. Conversely, a re-test of the 145.00 is possible, but with the BoJ vigilance around it, traders are not challenging the central bank.

The USD/JPY one-hour chart depicted a triple-top formation that extended to a multi-top, with the major remaining trendless. On the downside, the confluence of the 20, 50, and 100-EMA at around 144.47/53 are support levels, which, once cleared, will send the USD/JPY towards the S1 daily pivot at 144.02, shy of the 200-EMA. A breach of the latter will expose the S2 pivot at 143.50, followed by the S3 daily pivot point at 143.27.

USD/JPY Key Technical Levels

USD/JPY

Overview
Today last price 144.72
Today Daily Change 0.25
Today Daily Change % 0.17
Today daily open 144.47
 
Trends
Daily SMA20 143.29
Daily SMA50 138.66
Daily SMA100 136.05
Daily SMA200 127.82
 
Levels
Previous Daily High 144.81
Previous Daily Low 144.06
Previous Weekly High 145.9
Previous Weekly Low 140.35
Previous Monthly High 139.08
Previous Monthly Low 130.4
Daily Fibonacci 38.2% 144.53
Daily Fibonacci 61.8% 144.35
Daily Pivot Point S1 144.09
Daily Pivot Point S2 143.7
Daily Pivot Point S3 143.34
Daily Pivot Point R1 144.83
Daily Pivot Point R2 145.2
Daily Pivot Point R3 145.58

 

 

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