USD/JPY tests daily highs near 143.20 as USD continues to rise

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  • The dollar gains against the yen even if the markets fall.
  • Rising Treasury yields offset risk aversion.
  • USD/JPY is slowly regaining ground after the fall in intervention.

The USD/JPY rises on Friday amid tensions in financial markets. The pair found support above 142.50 and is testing daily highs near the 143.20 area. The dollar rally overall remains solid and firm.

Normally, when markets fall sharply, the yen is the best performer, but this was not the case on Friday. The dollar is the best behaved. It confirmed the gains after the S&P Global PMI figures for September, which were better than expected. DXY approaches 113.00, up 1.30%, while EUR/USD and GBP/USD trade at new cycle lows.

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Another weekly win?

USD/JPY is about to end the week with a modest gain and far from a top. The intervention of the Japanese authorities to boost the yen explains the move away from the recent multi-year highs. The pair reached a high of 145.89 before pulling back.

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The main driver of the rise remains the monetary policy divergence between the Bank of Japan and the Federal Reserve. On Thursday, the Bank of Japan left its accommodative policy unchanged, while the Federal Reserve raised interest rates by 75 basis points.

“The immediate reaction to the intervention announcement facilitated a strong rally in the Japanese currency and brought the yen back from lows against the dollar. However, we view the Bank of Japan’s intervention as only a temporary respite for the yen. In our In my opinion, as long as the monetary policy paths between the Fed and the BoJ remain divergent and interest rate differentials widen, the bias remains for the yen to continue to weaken and retrace lows in the near future,” they said. Wells Fargo analysts.

Technical levels

USD/JPY

Panorama
Last Price Today 143.14
Today’s Daily Change 0.78
Today’s Daily Change % 0.55
Today’s Daily Opening 142.36
Trends
20 Daily SMA 141.93
50 Daily SMA 138.04
100 Daily SMA 135.33
200 Daily SMA 127.06
levels
Previous Daily High 145.9
Previous Daily Minimum 140.35
Previous Maximum Weekly 144.96
Previous Weekly Minimum 141.66
Monthly Prior Maximum 139.08
Previous Monthly Minimum 130.4
Daily Fibonacci 38.2% 142.47
Daily Fibonacci 61.8% 143.78
Daily Pivot Point S1 139.84
Daily Pivot Point S2 137.32
Daily Pivot Point S3 134.29
Daily Pivot Point R1 145.4
Daily Pivot Point R2 148.43
Daily Pivot Point R3 150.95

Source: Fx Street

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