- 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
|Last price today||140.63|
|Today Change Daily||0.56|
|today’s daily variation||0.40|
|today’s daily opening||140.07|
|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
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.