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USD/JPY Price Analysis: Break above 140.00 despite US Dollar weakening and approach 141.00 resistance

  • USD/JPY is above 140.00 despite US economic data suggesting a possible Fed rate hike.
  • Japanese Finance Minister Shunichi Suzuki encourages currency rates to be determined by the market, saying he is closely monitoring exchange rate movements.
  • USD/JPY, poised to challenge 142.00 once above 141.00, finds support at 139.89/140.00, with a deeper pullback to 137.26.

He USD/JPY it rallied sharply above 140.00 late in the New York session on Friday, after heading towards its daily low of 139.49, before turning around. Strong economic data from the United States strengthened the chances of a further rate hike by the Federal Reserve (Fed), as shown by the market reaction. US Treasury yields rose before reversing as the dollar weakened. At the time of writing, the USD/JPY pair is trading at 140.60.

USD/JPY Price Analysis: Technical Perspective

After hitting a new yearly high at 140.72, the USD/JPY It fell back a bit, but maintains the bullish bias. Once USD/JPY broke the November 30 swing high at 139.89, buyers piled in to break 140.00 despite Japanese Finance Minister Shunichi Suzuki saying markets should set currency rates based on the economic fundamentals. He stated that he closely follows the movements of exchange rates.

During the session on Friday, the USD/JPY continued and extended its gains, but the pair lost momentum as the New York session began to wind down. However, if USD/JPY extends its gains beyond 141.00, next resistance would be the 142.00 figure, before testing the November 22 high at 142.24.

Conversely, first USD/JPY support would be 140.00, before falling to the previous Nov 30 resistance turned support at 139.89. A drop below could clear the way for the pair to fall towards the December 15 daily high of 138.17 before reaching the 20-day EMA at 137.26.

USD/JPY Price Action – Daily Chart

USD/JPY Daily chart


Last price today 140.63
Today Change Daily 0.56
today’s daily variation 0.40
today’s daily opening 140.07
daily SMA20 136.62
daily SMA50 134.31
daily SMA100 133.43
daily SMA200 137.21
previous daily high 140.23
previous daily low 138.82
Previous Weekly High 138.75
previous weekly low 135.65
Previous Monthly High 136.56
Previous monthly minimum 130.63
Fibonacci daily 38.2 139.69
Fibonacci 61.8% daily 139.36
Daily Pivot Point S1 139.18
Daily Pivot Point S2 138.3
Daily Pivot Point S3 137.77
Daily Pivot Point R1 140.59
Daily Pivot Point R2 141.12
Daily Pivot Point R3 142

Source: Fx Street

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