Currency market: USD/JPY vs G28 currencies and BoJ

Brian Twomey Brian's Investment

USD/JPY as covered in previous posts lifted from 128.00’s around March 2022 and historically from a terrible location based on my model review. USD/JPY's rise from 128.00's coincided to the Fed's first raise.

As USD/JPY was the worst possible price for liftoff, the continued rise placed USD/JPY in a precarious situation as ranges expanded to 2500 + pips but to trade overbought to most if not all G28 currency pairs. USD/JPY has been trading completely off kilter to currency markets since 128.00's.

The BOJ will not Intervention anytime soon which means USD/JPY's price remains inside the market to trade current averages.

USD/JPY's only big news is from the August 2 Uchida speech as stated If the BOJ ever raised rates then only by 10 points. This drops the -0.1 rate from 0.9 to 0.8. The BOJ for the forseeable future remains negative to interest rates.

Japan’s Inflation rate is the determination however the BOJ is not in any hurry nor in discussion to raise rates anytime soon.

USD/JPY from 128.00’s and now 151.00’s traded 2300 pips or 1 full currency cycle of 2500 pips.

USD/JPY trades massive overbought Vs EUR/USD, GBP/USD, USD/CAD, EUR/CAD, EUR/GBP. The commonality to many currencies is a top is close in the low 150.00's.

USD/JPY trades overbought from CHF cross pairs. USD/JPY trades overbought to a vast majority of our 28 currency pairs.

USD/JPY contains a long way to travel lower. First big break at 147.66 targets 144.00’s for the shortest term.

USDJPY Vs DXY 128.60 to 155.89.

USDJPY V EURUSD 129.01 Vs 155.81.

USDJPY V GBPUSD 136.76 Vs 1.5426.

USDJPY Vs AUDUSD 107.51 Vs 160.11.

USDJPY V USDCAD 144.74 Vs 152.66.

USD/JPY Vs USD/CHF 120.82 Vs 157.43.

USD/JPY Vs NZD/USD 105.13 Vs 160.57.

USD/JPY Vs GBP/CAD 160.04.

USD/JPY Vs EUR/CAD 149.31 Vs 151.73.

USD/JPY Vs EUR/AUD 159.43.

USD/JPY Vs EUR/GBP 119.30 Vs 157.74.

USD/JPY Vs EUR/CHF = 123.81 to 156.84.

USD/JPY Vs GBP/CHF 130.84 to 155.43.

Author

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

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