USDJPY Keeps Trending Higher Despite All the Drama

We have seen some dramatic moves in USDJPY in 2024, and the sentiment continues to induce a lot of volatility, but the trend remains bullish

Skerdian Meta•Tuesday, October 29, 2024•1 min read

We have seen some dramatic moves in USDJPY this week, and the sentiment continues to induce a lot of volatility, but the trend remains bullish. Yesterday this pair opened with a 40 pips gap higher and continued to climb another cent higher, approaching 154, but retreated lower to 152.40 in the US session, where it found support once again.

Japanese unemployment rate for October

The USD/JPY pair continues its volatile run, influenced by recent developments in Japan, USD strength, and the yen’s safe-haven status. The Bank of Japan has intervened actively throughout the year, adding to market fluctuations. The yen experienced further volatility following Sunday’s general elections in Japan, which resulted in no clear majority winner. Since mid-September, USD/JPY recovered from below 140 and climbed nearly 12 cents to 153 in October, supported by key moving averages on the H4 chart, particularly the 50 (yellow) and 20 (gray) SMAs.

USD/JPY Chart H4 – MAs Keeping the Price Supported

Japanese Elections and Yen Uncertainty

The ruling coalition of the Liberal Democratic Party (LDP) and Komeito lost their majority in the lower house, reducing their seats from 288 to 215, below the 233-seat majority threshold. The Constitutional Democratic Party (CDP) made significant gains, rising from 91 to 148 seats. Despite economic data offering little support for a Bank of Japan rate hike, and with September’s unemployment rate reported recently, the political landscape adds layers of uncertainty for yen stability.

Japan Unemployment Rate for September

USD/JPY Live Chart

USD/JPY

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.