The USD/JPY pair saw minimal gains on Tuesday, briefly hitting 146.37 before dropping below 145.00. This suggests a potential consolidation phase between 144.00 and 146.00. Currently trading at 144.61 with a 0.17% gain, the pair’s next moves will be crucial.
Technical Outlook for USD/JPY Price
Despite a brief rebound above 146.00, sellers pushed the pair below 145.00, indicating possible further losses. The Relative Strength Index (RSI) is in oversold territory, hinting at a consolidation phase between 144.00-146.00 before a potential downtrend.
If the pair drops below 144.00, key support levels to watch include the August 6 low at 143.61 and the August 2 bottom at 141.70. On the other hand, breaking above 145.00 could lead to a test of the August 5 peak at 146.37 and the August 2 high at 149.77.
Analysis of USD/JPY Price Action
Japanese Yen FAQs
The Japanese Yen (JPY) is influenced by various factors, including the Bank of Japan’s policy, bond yield differentials, and risk sentiment. The BoJ’s ultra-loose monetary policy has caused the Yen to depreciate against other currencies, especially the US Dollar. This policy divergence favors the USD over JPY, widening the bond yield differentials.
Additionally, the Japanese Yen is often considered a safe-haven investment, attracting investors during market stress. This perceived reliability and stability strengthen the Yen’s value against riskier currencies in turbulent times.