The USD/JPY pair bounced back from a 14-week low of 151.93, now trading at 153.73. Technical indicators suggest a possible rally towards 156.00 if key resistance levels are cleared.
Technical Outlook and Momentum Analysis
Despite Friday’s recovery, the pair’s price action remains bearish, with sellers in control. The Relative Strength Index (RSI) is near oversold territory, indicating further downward pressure. Key support lies at 153.00 for a bearish continuation.
If bears manage to push prices below 153.00, the next support levels are at 151.94 and 151.00. On the other hand, a break above 156.00 is needed for buyers to regain control and lift prices above the Ichimoku Cloud (Kumo).
Japanese Yen FAQs
The Japanese Yen (JPY) is influenced by various factors such as the Bank of Japan’s policies, bond yield differentials, and risk sentiment among traders. The BoJ’s ultra-loose monetary policy has caused the Yen to depreciate against other currencies, especially the US Dollar.
During times of market stress, the Japanese Yen is considered a safe-haven investment, strengthening its value against riskier currencies. The widening policy divergence between the BoJ and other central banks supports the USD against the JPY.
Overall, the USD/JPY pair faces resistance at 156.00, with key support at 153.00. Understanding these levels and market dynamics can help investors make informed decisions about their trades and portfolios.