- The USD/JPY falls from 150.91 to 147.28 through the weak non -agricultural payrolls.
- The torque falls below the simple mobile socks (SMA) of 200 and 20 days, the RSI becomes bassist.
- The following key support is located at 145.71, where the 50 and 100 days SMA converge.
The USD/JPY is ready to close the week with losses of 0.18% after an employment report in the United States (USA) worse than expected that opened the doors to the demand for safe shelter, pushing the Japanese and upward and rising. This, together with the fall in the yields of the US Treasury bonds, made the torque collapse more than 2%, of around 150.91 to 147.28. At the time of writing, the par quotes 147.38, near the weekly minimums.
Forecast of the USD/JPY price: technical perspective
The USD/JPY invested its course with the data, immersing itself below the 200 -day SMA in 149.49, which cleared the way to test the minimum daily of July 31, 148.58. The latter was rapidly surpassed with sellers pushing the torque towards the 20 -day SMA in 147.69, before exceeding the 147.50 mark.
As the end of the trading day approaches, the pair stabilized below the latter. The momentum has changed slightly to bassist, as the relative force index (RSI) shows.
If the USD/JPY exceeds 147.00, the following support would be the minimum oscillation of July 24, 145.85, immediately followed by the confluence of the SMA of 100 and 50 days in 145.71. A rupture of this last will expose the 144.00 mark.
USD/JPY – Diario price chart
Japanese – frequent questions
The Japanese Yen (JPY) is one of the most negotiated currencies in the world. Its value is determined in general by the march of the Japanese economy, but more specifically by the policy of the Bank of Japan, the differential between the yields of the Japanese and American bonds or the feeling of risk among the operators, among other factors.
One of the mandates of the Bank of Japan is the currency control, so its movements are key to the YEN. The BOJ has intervened directly in the currency markets sometimes, generally to lower the value of YEN, although it abstains often due to the political concerns of its main commercial partners. The current ultralaxy monetary policy of the BOJ, based on mass stimuli to the economy, has caused the depreciation of the Yen in front of its main monetary peers. This process has been more recently exacerbated due to a growing divergence of policies between the Bank of Japan and other main central banks, which have chosen to abruptly increase interest rates to fight against inflation levels of decades.
The position of the Bank of Japan to maintain an ultralaxa monetary policy has caused an increase in political divergence with other central banks, particularly with the US Federal Reserve. This favors the expansion of the differential between the American and Japanese bonds to 10 years, which favors the dollar against Yen.
The Japanese Yen is usually considered a safe shelter investment. This means that in times of tension in markets, investors are more likely to put their money in the Japanese currency due to their supposed reliability and stability. In turbulent times, the Yen is likely to be revalued in front of other currencies in which it is considered more risky to invest.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
