USD/JPY Price Analysis: Pullback from YTD highs, intervention threats weight on the USD
- USD/JPY trades lower, retreating from its year-to-date (YTD) high amid signals of potential intervention by Japanese authorities.
- Despite the upward bias, USD/JPY may extend its losses below the 144.00 mark, potentially reaching the 20-day Exponential Moving Average (EMA) at 142.95.
- Resistance levels lie at the YTD high of 145.07 and the May 10 high of 146.59.
USD/JPY retreats from the year-to-date (YTD) high of 145.07, extending its losses below the 144.10 area, as the US Dollar (USD) weakens despite US Treasury bond yields, particularly the 10-year benchmark note rate edged above the 4.00% threshold. At the time of writing, the USD/JPY exchanges hand at 144.06, down 0.40%.
USD/JPY Price Analysis: Technical outlook
USD/JPY price action suggests the pair is headed for a deeper pullback after Japanese authorities threatened to intervene in the Forex market. The USD/JPY remains upward biased, but the pullback could extend past the 144.00 mark toward the 20-day Exponential Moving Average (EMA) at 142.95.
Of note, the USD/JPY achieved a daily close below the July 3 daily open of 144.08. That could exacerbate a drop below 144.00, exposing the 143.50 psychological level, followed by the 20-day EMA at 142.95. Downside risks will emerge at the June 21 daily high of 142.37, followed by the 142.00 mark.
On the upside, immediate resistance lies at the year-to-date (YTD) high of 145.07, followed by the May 10 high at 146.59.
USD/JPY Price Action – Daily chart
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
