USDJPY - Could the pair break the 150 resistance?
Fundamental analysis
From a fundamental perspective, the dollar-yen continues to move to the upside, trading near the significant 150 resistance level, mostly due to increasing speculations that the US Federal Reserve will be more cautious in cutting interest rates in the future, which strengthened the US dollar.
Regarding the Japanese yen, markets reacted to Bank of Japan board member Seiji Adachi's latest comments. Adachi said conditions are already in place to normalize monetary policy but emphasized that the central bank must raise interest rates at a "very moderate" pace. He warned that the BoJ should avoid a radical policy change given uncertainties over the global economic outlook and domestic wage growth.
Technical analysis
From a technical perspective, the price is recovering from previous losses after testing the last support level at around 140. USDJPY is trading near the 150 resistance (50% Fibonacci level), with the RSI showing a bearish divergence after being in the overbought zone. This suggests a possible reversion to the downside in the short term.
If the price continues to fall, it could test the next support at 148 before 145 (23.6% Fibonacci level). Conversely, if the price continues to rise, it could test the next resistance around 150 before 153 (61.8% Fibonacci level).
From a fundamental perspective, the dollar-yen continues to move to the upside, trading near the significant 150 resistance level, mostly due to increasing speculations that the US Federal Reserve will be more cautious in cutting interest rates in the future, which strengthened the US dollar.
Regarding the Japanese yen, markets reacted to Bank of Japan board member Seiji Adachi's latest comments. Adachi said conditions are already in place to normalize monetary policy but emphasized that the central bank must raise interest rates at a "very moderate" pace. He warned that the BoJ should avoid a radical policy change given uncertainties over the global economic outlook and domestic wage growth.
Technical analysis
From a technical perspective, the price is recovering from previous losses after testing the last support level at around 140. USDJPY is trading near the 150 resistance (50% Fibonacci level), with the RSI showing a bearish divergence after being in the overbought zone. This suggests a possible reversion to the downside in the short term.
If the price continues to fall, it could test the next support at 148 before 145 (23.6% Fibonacci level). Conversely, if the price continues to rise, it could test the next resistance around 150 before 153 (61.8% Fibonacci level).
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