USDJPY adjusted sharply down
Updated
Taking advantage of the weak US consumer price index (CPI) on Thursday to push the US Dollar down in price on the foreign exchange market, the Japanese government intervened, causing USD/JPY to plummet.
The amount of intervention by the Japanese government that day amounted to 3.57 trillion yen (22.43 billion USD), less than 3 months since the last intervention.
Friday's move in USD/JPY could be the result of continued intervention. It seems that the Bank of Japan will take advantage of good opportunities from time to time (for example, when major US economic data is released and the market takes advantage of the dollar's devaluation trend) to conduct unusual intervention. to achieve goals quickly, with accurate results and save costs.
However, to substantively change the trend of the Yen, it still depends on whether the Bank of Japan can resolutely take some major measures, such as stopping bond purchases or significantly increasing interest rates at the meeting. interest rate meeting at the end of July, which could completely reverse the yen's downtrend. If the Japanese government remains cautious about the major issues mentioned above, it will be difficult for the Yen to recover.
On the daily chart, although USDJPY has moderated significantly, it still does not technically qualify for a bearish trend.
Specifically, USD/JPY's decline was limited by the technical level of 157.224 and the 0.382% Fibonacci extension; On the other hand, the Relative Strength Index has not yet reached the oversold level but is curving upward, showing that the downward momentum and room for price declines is not too much.
However, a drop below the EMA21 also creates pressure on the price increase, while the nearest resistance level is noticed at the 0.50% Fibonacci level confluence with the lower edge of the price channel (a). If USD/JPY can recover above the 0.50% Fibonacci it will have the potential for a further recovery to the EMA21 area.
As long as USD/JPY is not sold below 157 it still has room to rise technically, in case it is sold below 157 it will be more bearish with 155 as the next target, So the point to protect the long position should be placed behind the level 157.
Looking ahead, the technical trend of USD/JPY still offers upside with notable technical points listed as follows.
Support: 157.224 – 157.209 – 157
Resistance: 158.616 – 160.204
The amount of intervention by the Japanese government that day amounted to 3.57 trillion yen (22.43 billion USD), less than 3 months since the last intervention.
Friday's move in USD/JPY could be the result of continued intervention. It seems that the Bank of Japan will take advantage of good opportunities from time to time (for example, when major US economic data is released and the market takes advantage of the dollar's devaluation trend) to conduct unusual intervention. to achieve goals quickly, with accurate results and save costs.
However, to substantively change the trend of the Yen, it still depends on whether the Bank of Japan can resolutely take some major measures, such as stopping bond purchases or significantly increasing interest rates at the meeting. interest rate meeting at the end of July, which could completely reverse the yen's downtrend. If the Japanese government remains cautious about the major issues mentioned above, it will be difficult for the Yen to recover.
On the daily chart, although USDJPY has moderated significantly, it still does not technically qualify for a bearish trend.
Specifically, USD/JPY's decline was limited by the technical level of 157.224 and the 0.382% Fibonacci extension; On the other hand, the Relative Strength Index has not yet reached the oversold level but is curving upward, showing that the downward momentum and room for price declines is not too much.
However, a drop below the EMA21 also creates pressure on the price increase, while the nearest resistance level is noticed at the 0.50% Fibonacci level confluence with the lower edge of the price channel (a). If USD/JPY can recover above the 0.50% Fibonacci it will have the potential for a further recovery to the EMA21 area.
As long as USD/JPY is not sold below 157 it still has room to rise technically, in case it is sold below 157 it will be more bearish with 155 as the next target, So the point to protect the long position should be placed behind the level 157.
Looking ahead, the technical trend of USD/JPY still offers upside with notable technical points listed as follows.
Support: 157.224 – 157.209 – 157
Resistance: 158.616 – 160.204
Comment
Comment
From a technical perspective, USD/JPY is trending neutral to bearish as more negative technical signals appear. This, coupled with the release of decelerating inflation, could put pressure on the greenback and push the pair lower. Momentum shows that sellers are dominant, paving the way for the next downtrend.
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