- The USD/JPY begins on Friday about 147.90 after the fall of 0.30% on Thursday, pressed by the US -resolved commercial tensions of the United States.
- The pair fails to capitalize on the recent bullish pattern of ‘tweezers’ soil’ near the annual minimums, remaining vulnerable below the key resistance of Tenkan-sen.
- A break below the immediate support in 146.54 could trigger deeper sales; Recover 148.00 could pave the road to the resistance of 149.79.
The USD/JPY begins Friday’s Asian session in a higher note, after the losses of 0.305 on Thursday, which pushed the exchange rate to close in 147.81 daily. At the time of writing, the par is quoted in 147.91, practically unchanged, while the operators continue to digest the tariff rhetoric of US President Donald Trump.
USD/JPY price forecast: technical perspective
Although the USD/JPY formed a graphic pattern of ‘twiln twlashes’ soil’ near the minimum of the year to date (YTD) of 146.54, two days ago, the pair failed to decisively clear the tenkan-sen in 148.97, which opened the door to a setback.
Consequently, the USD/JPY fell below 148.00 and continued down, aligned with the market in general. If the torque falls below the latter, the following support would be the minimum oscillation of March 11, 146.54.
On the contrary, if the USD/JPY rises above 148.00, a rebound towards the Senkou Span A test in 149.79 is in the cards.
USDJPy Price Graph: Technical Perspective
And in Japanese faqs
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.
