- Despite an upbeat sentiment, USD/JPY is almost sideways as rumors of Japanese FX intervention loom.
- USD/JPY daily chart shows the pair as overbought as RSI above 70 gives USD/JPY bulls some breathing room.
- In the short term, an ascending triangle on the hourly chart points to USD/JPY rising to 149.36-50.
The USD/JPY extended gains for the ninth day in a row, bolstered by renewed dovish comments from the Bank of Japan (BoJ) over the past week, despite efforts by Finance Minister Suzuki and Japanese Prime Minister Kishida to boost the Japanese yen. At the time of writing, USD/JPY is trading at 148.75, up 0.01% from its opening price.
USD/JPY Price Forecast
USD/JPY hit a fresh 32-year high at 148.89 as the pair approaches 150.00, but fears of further FX market intervention by Japanese authorities prevent traders from opening new long positions in the USD/JPY. It should be noted that the daily chart shows oscillators in overbought conditions, specifically the Relative Strength Index (RSI), which at 76.74, is almost flat, which gives a break to the USD/JPY shorts.
The USD/JPY one hour chart outlines the pair in consolidation, hovering around the 20 EMA, which, being below the exchange rates, suggests that the pair is bullish. However, price action printing lower highs and higher lows signal that it could be forming an ascending triangle, paving the way for further gains.
A break above 148.89 will expose 149.00. Once broken, the next resistance would be the daily pivot R1 and also the ascending triangle measure target at 149.36, immediately followed by 149.50 and 150.00.
Key USD/JPY Technical Levels
Source: Fx Street
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