- USD/JPY experienced slight losses due to threats of Japanese intervention in the foreign exchange market and the lull in trading for US Independence Day.
- Technical indicators suggest the possibility of a reversal, with the RSI near the overbought threshold and a negative RoC.
- If USD/JPY turns back, key supports lie at 144.00 and 143.11, while a recovery could target November highs and beyond.
The USD/JPY pair is trading with minimal losses amid verbal intervention by the Japanese authorities, as well as a rocky trade, with traders in the United States (US) out for the Independence Day holiday of USA. The USD/JPY pair is trading at 144.48, after reaching a daily high of 144.70.
USD/JPY Price Analysis: Technical Perspective
The USD/JPY pair remains in an uptrend, although it cannot get close to a new year high of 145.07 amid threats from the Japanese authorities to get steep in the currency markets. It must be said that the RSI is still in an overbought condition, about to cross below the 70 levels, which could open the door for a deeper pullback.
On the other hand, the three-day exchange rate (RoC) shows that the selling pressure is fading as it turned negative, suggesting that a further decline is possible.
If USD/JPY turns back, the first support will be the 144.00 figure. A break of this last level would expose investors to a further fall. A break of the latter will expose the 38.2% Fibonacci retracement at 146.57, traced from the June 28 lows towards a year-high. Once broken, the 50% Fibonacci retracement will be next at 143.11, followed by the confluence of the 20 day EMA and the 61.8% golden ratio at 142.51/65.
Conversely, if USD/JPY makes new yearly highs above 145.00, the next resistance would be the November 10 high at 146.59, followed by the November 1 daily high at 148.82 and the 2022 high at 151.94.
USD/JPY Price Action – Daily Chart
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.
