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USD/JPY Price Analysis: Subdued around 143.35 after threats of Japanese intervention

  • USD/JPY remains low after a verbal intervention from the Japanese authorities.
  • The negative divergence on the daily chart could take USD/JPY towards 142.00.
  • In the short term, USD/JPY could test the 141.00 area.

The USD/JPY recovers some ground after rumors of a possible verbal intervention by the Japanese authorities to boost the yen, but remains below 144.00, above its opening price by 0.21%. At the time of writing, the USD/JPY is trading at 143.43.

USD/JPY Price Analysis: Technical Outlook

From a daily chart point of view, USD/JPY still has a bullish bias, but price action is overextended, with buyers showing signs of exhaustion. Despite USD/JPY retesting the year’s high on September 14, the Relative Strength Index (RSI) showed signs of negative divergence, suggesting that the major could drop soon. If USD/JPY breaks above the 145.00 level, the August 1998 high at 147.67 could be tested. Conversely, a break below 143.00 could drop USD/JPY towards the 142.00 figure.

In the short term, the 4 hour chart shows the testing of the daily pivot over the last five candlesticks. If it doesn’t, demand for the dollar is weak and the pair is exposed to further losses. Once the sellers break above the 50 EMA at 143.09, it would pave the way towards the 143.00 figure. The break below will expose the S1 pivot point at 142.13, ahead of the 142.00 mark, followed by the S2 daily pivot at 141.13.

Key USD/JPY Technical Levels

USD/JPY

Panorama
Last Price Today 143.4
Today’s Daily Change 0.41
Today’s Daily Change % 0.29
Today’s Daily Opening 142.99
Trends
20 Daily SMA 139.97
50 Daily SMA 137.3
100 Daily SMA 134.53
200 Daily SMA 126.17
levels
Previous Daily High 144.96
Previous Daily Minimum 142.55
Previous Maximum Weekly 144.99
Previous Weekly Minimum 140.12
Monthly Prior Maximum 139.08
Previous Monthly Minimum 130.4
Daily Fibonacci 38.2% 143.47
Daily Fibonacci 61.8% 144.04
Daily Pivot Point S1 142.04
Daily Pivot Point S2 141.09
Daily Pivot Point S3 139.63
Daily Pivot Point R1 144.45
Daily Pivot Point R2 145.91
Daily Pivot Point R3 146.86

Source: Fx Street

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