- USD/JPY trims some of its Asian session gains courtesy of the Bank of Japan’s decision.
- USD/JPY Price Analysis: Failure to conquer the 20-day EMA exacerbated a 200-plus pip fall beneath 128.50.
The USD/JPY clings to gains after hitting a daily high of 131.57 following the release of the Bank of Japan’s (BoJ) monetary policy decision, which sparked a 400 pip rally. However, throughout the North American session, the Japanese Yen (JPY) stages a comeback against its counterpart, the US Dollar (USD), and so far is down 0.24%. At the time of writing, the USD/JPY is trading at 128.56.
USD/JPY Price Analysis: Technical outlook
The USD/JPY daily chart portrays the major tested the confluence of the 20-day Exponential Moving Average (EMA) and the day’s high at 131.37 and failed to sustain the uptrend. Furthermore, on its way down, the USD/JPY retraced below a four-month downslope resistance trendline that passed around 130.30 ad extended its downtrend beneath 129.00 toward the current spot price.
However, oscillators like the Relative Strength Index (RSI although at bearish territory, its slope aims up, which could mean a reversal could happen. But the Rate of Change (Roc) suggests buyers are losing momentum as it retraces to the zero level.
The path of least resistance in the USD/JPY is downward biased, though if the USD/JPY prints a daily close above 128.46, that could open the door for further upside and might test the 129.00 mark. Otherwise, the USD/JPY first support would be 128.00. A breach of the latter will expose the May 24 swing low of 126.36, followed by the March 31 daily low of 121.27.
USD/JPY Key Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
How will US Dollar react to Q1 GDP data? – LIVE
The US' GDP is forecast to grow at an annual rate of 2.5% in the first quarter of the year. The US Dollar struggles to find demand as investors stay on the sidelines, while waiting to assess the impact of the US economic performance on the Fed rate outlook.
EUR/USD holds gains above 1.0700, as key US data loom
EUR/USD holds gains above 1.0700 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.