USD/JPY Analysis: Maintaining Momentum after YTD High Amid Global Influences

Posted Thursday, September 21, 2023 by
Arslan Butt • 1 min read

In Thursday’s Asian trading session, the USD/JPY pair experienced a minor retreat from its year-to-date zenith around 148.45, though it demonstrated resilience by remaining above its daily low. At present, the pair is hovering near the 148.25 mark, exhibiting a negligible decline of less than 0.10% for the day, and retains potential for further appreciation.

Given its recent surge past the robust horizontal resistance of 146.50-146.60, the pair’s overnight endurance and its daily closure beyond the 148.00 threshold might invigorate bullish investors. This favorable trajectory for USD/JPY is buttressed by the prevailing bullish ambiance around the US Dollar (USD), amplified by the Federal Reserve’s hawkish stance.

However, the sentiment is slightly tempered by Japan’s Chief Cabinet Secretary Hirokazu Matsuno’s remarks, wherein he remained open to all conceivable countermeasures to foreign exchange fluctuations. This statement hints at a potential intervention by Japanese authorities in support of their native currency. Concurrently, rumors suggesting a potential shift by the Bank of Japan (BoJ) away from its negative interest rate framework further fortify the Japanese Yen (JPY), imposing a ceiling on USD/JPY’s gains.

On a technical front, the daily chart’s indicators sit firmly in the bullish domain without approaching overbought conditions. This alignment supports bullish investors, insinuating that the easiest path forward for the USD/JPY pair leans upwards. Thus, any pronounced dip below the 148.00 mark might be perceived as a potential acquisition opportunity in the vicinity of 147.70-147.65.

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