USD/JPY Falls to Six-Day Low Amidst Risk Aversion
The Japanese Yen has made significant gains against the US Dollar, with USD/JPY trading at 153.83 due to heightened risk aversion caused by the escalating Ukraine-Russia conflict. Investors are turning to safe-haven currencies like the Yen and the Swiss Franc in times of uncertainty.
Technical Indicators Point to Further Declines
- USD/JPY broke through key support levels, with potential targets set at Kijun-sen and the 200-day SMA at 151.88.
- Immediate resistance for USD/JPY is at 154.00, with significant upper resistance at the recent peak of 156.75.
USD/JPY Price Forecast: Technical Outlook
The USD/JPY has breached support at 154.71, leading to a six-day low of 153.28. Further declines could see the pair testing the 200-day Simple Moving Average (SMA) at 151.88.
To reach the 200-day SMA, USD/JPY needs to surpass the Kijun-sen at 152.80 and the 152.00 mark. Subsequent levels include the 200-day SMA and the 100-day SMA at 151.94.
On the upside, resistance levels for USD/JPY are at 154.00 and 156.75.
USD/JPY Price Chart – Daily
Japanese Yen FAQs
- What Determines the Value of the Japanese Yen?
- The value of the Japanese Yen is influenced by factors such as the performance of the Japanese economy, Bank of Japan’s policy, bond yield differentials, and risk sentiment among traders.
- How Does the Bank of Japan Impact the Yen?
- The Bank of Japan’s currency control measures, including interventions in the currency markets, play a crucial role in determining the value of the Yen.
- What Impact Does BoJ’s Monetary Policy Have on the Yen?
- The BoJ’s ultra-loose monetary policy from 2013 to 2024 caused the Yen to depreciate against other currencies, but recent policy changes have provided support to the Yen.
- Why is the Japanese Yen Considered a Safe-Haven Investment?
- The Japanese Yen is viewed as a safe-haven currency, meaning investors tend to flock to it during times of market stress for its perceived reliability and stability.