- The USD/JPY quotes about 144.50 on Friday, in the middle of a scarce liquidity, since US markets remain closed by Independence Day.
- The weekly candle is being formed as a long -legged doji, pointing out strong indecision and possible breakout.
- The 50 -day EMA in 144.90 acts as an immediate resistance, while the initial support is in the minimum of Thursday about 143.50.
The US dollar (USD) is quoting slightly down against Japanese Yen (JPY) on Friday, with the USD/JPY around 144.50 in market conditions contained by the holidays, since US markets remain closed by Independence Day.
Despite the intra -dialing, the USD/JPY remains comfortably above the lower limit of a symmetrical triangle in the daily chart, marked by lower and higher maximum maximums since April. This suggests a slightly positive perspective before weekly closure, particularly with the weekly candle forming a long -legged doji, indicating the continuous struggle between bullish and bassists.
The symmetrical triangle pattern suggests that, although neither the bulls nor the bassists have taken firm control, the price is approaching the vertex of the triangle. The 50 -day exponential (EMA) mobile average, which currently around 144.90, acts as immediate resistance. A clear rupture above this confluence zone could pave the way for an upward movement towards the upper limit of the triangle, the 146.50–147.00 region.
In the lower part, the initial support is near the minimum of Thursday of 143.50, which is closely aligned with the ascending line of trend that forms the base of the triangle. A daily closure below this level would incline the short -term bias in favor of the vendors, potentially racing the way for a fall to level 142.50 marked on July 1, followed by the minimum of April about 139.89.
From a Momentum perspective, the relative force index (RSI) in the daily chart is about 49, indicating a balanced market. However, the RSI shows a slight descending slope, suggesting a fading of the bullish impulse and a slight sales pressure as the torque moves down into the range of the previous day.
Meanwhile, the indicator of convergence/divergence of mobile socks (MACD) remains flat and lacks direction. The MACD line is slightly below the signal line, and the histogram continues to narrow itself, reflecting a content moment. This reinforces the vision that operators remain cautious and expect a clear catalyst before opening new positions.
Japanese – frequent questions
The Japanese Yen (JPY) is one of the most negotiated currencies in the world. Its value is determined in general by the march of the Japanese economy, but more specifically by the policy of the Bank of Japan, the differential between the yields of the Japanese and American bonds or the feeling of risk among the operators, among other factors.
One of the mandates of the Bank of Japan is the currency control, so its movements are key to the YEN. The BOJ has intervened directly in the currency markets sometimes, generally to lower the value of YEN, although it abstains often due to the political concerns of its main commercial partners. The current ultralaxy monetary policy of the BOJ, based on mass stimuli to the economy, has caused the depreciation of the Yen in front of its main monetary peers. This process has been more recently exacerbated due to a growing divergence of policies between the Bank of Japan and other main central banks, which have chosen to abruptly increase interest rates to fight against inflation levels of decades.
The position of the Bank of Japan to maintain an ultralaxa monetary policy has caused an increase in political divergence with other central banks, particularly with the US Federal Reserve. This favors the expansion of the differential between the American and Japanese bonds to 10 years, which favors the dollar against Yen.
The Japanese Yen is usually considered a safe shelter investment. This means that in times of tension in markets, investors are more likely to put their money in the Japanese currency due to their supposed reliability and stability. In turbulent times, the Yen is likely to be revalued in front of other currencies in which it is considered more risky to invest.
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.
