Daily technical and trading outlook – USD/JPY

Daily USD/JPY technical outlook

Last Update At 05 Oct 2022 00:47GMT.

Trend daily chart

Sideways

Daily indicators

Bearish divergences.

21 HR EMA

144.31

55 HR EMA

144.51

Trend hourly chart

Near term down.

Hourly indicators

Falling

13 HR RSI

30

14 HR DMI

-ve

Daily analysis

Consolidation with downside bias.

Resistance

145.31 - Mon's high.
144.93 - Tue's high.
144.42 - Tue's Asian low (now res).

Support

143.54 - Intra-day low.
143.28 - Last week's low (Mon).
142.84 - 50% r of 140.36-145.31.

USD/JPY - 143.87.. The pair swung sideways initially in Asia n European mor ning as market focus was on other G7 currencies. Price ratcheted higher fm 144. 42 to 144.93 in NY morning b4 tumbling in tandem with U.S. yields to 143.90.

On the bigger picture, dlr's spectacular rally fm 2011 historic 75.32 low (Mar) due to co-ordinated yen-selling intervention by G7 central banks to weaken the yen in the aftermath of Japan's earthquake and tsunami of Mar 2011 to 125.86 (2015) confirms major low has been made. Although price fell back to 99.00 in mid -2016 n swung broadly sideways until 2021, price rallied in tandem with US yields to a 24-year peak of 139.39 in mid-Jul n then strg gain to 145.89 in post-BoJ Thur signals uptrend remains in force. However, dlr's spectacular plunge to 140. 36 on BoJ's yen buying intervention signals correction has occured, as long as 138.81 (50% r of 131.74) holds, upside bias remains, abv 144.70, 145.89 again.

Today, dlr's selloff fm 145.89 to 140.36 earlier on BoJ's intervention signals temp. top made, subsequent rise to 145.31 Mon suggests correction possi= bly over, intra-day weakness to 143.54 may head to 143.28, o/sold readings may keep price abv 142.84. Only abv 144.42 signals low is made n yields 144.80/60.