USD/JPY Price Analysis: Breaks to new YTD highs on USD strength, rising wedge in focus

USD/JPY surges to a YTD high of 141.91, though failure to surpass 142.00 could trigger a sell-off.
The rising wedge pattern sparks uncertainty as USD/JPY nears key resistance.
Japanese FX intervention may influence future USD/JPY direction.

Christian Borjon Valencia FXStreet

USD/JPY soared more than 1% on Friday due to safe-haven flows and a jump in US Treasury bond yields. On its way north, the USD/JPY reached a new year-to-date (YTD) high of 141.91 after bouncing off daily lows of 139.85. At the time of writing, the USD/JPY is exchanging hands at 141.85.

USD/JPY Price Analysis: Technical outlook

USD/JPY finished the week with a higher tone but facing solid resistance, as the daily chart shows. The major has been trading within a rising wedge, and the USD/JPY closed nearby the top-trendline of the pattern at around 141.86. Failure to crack resistance and push prices above 142.00 would expose the USD/JPY to selling pressure. In addition, Japanese authorities’ language interventions in the FX markets could weigh on the pair and open the door for a correction.

With the USD/JPY’s path of least resistance being upwards, the pair’s first ceiling level would be 142.00. Break above will expose the November 22 high at 142.24, ahead of reaching 143.00. Conversely, the USD/JPY could dive to May’s 29 high turned support at 140.92 before dropping to the 20-day Exponential Moving Average (EMA) at 139.40.

USD/JPY Price Action – Daily chart

USD/JPY

Overview
Today last price	141.86
Today Daily Change	1.51
Today Daily Change %	1.08
Today daily open	140.35

Trends
Daily SMA20	139.58
Daily SMA50	136.71
Daily SMA100	134.89
Daily SMA200	137.24

Levels
Previous Daily High	141.5
Previous Daily Low	139.94
Previous Weekly High	140.45
Previous Weekly Low	138.76
Previous Monthly High	140.93
Previous Monthly Low	133.5
Daily Fibonacci 38.2%	140.91
Daily Fibonacci 61.8%	140.54
Daily Pivot Point S1	139.7
Daily Pivot Point S2	139.04
Daily Pivot Point S3	138.14
Daily Pivot Point R1	141.26
Daily Pivot Point R2	142.16
Daily Pivot Point R3	142.82

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

$4,200: Back in sight for Gold after Warsh’s silence on interest rate outlook

Gold is looking to build on its recent recovery, reverting toward $4,200 in the early European hours, as traders digest US Fed Kevin Warsh’s neutral remarks delivered at the Fireside Chat with International Monetary Fund (IMF) Managing Director Kristalina Georgieva in Bangkok.

Bitcoin holds $80,500; Ethereum rebounds, Ripple weakens

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) show mixed price action on Friday, with BTC and ETH holding above key support levels while XRP struggles below key resistance. Meanwhile, sticky inflation figures have dampened risk appetite, and momentum indicators for these top three cryptocurrencies have also weakened, signaling a risk of a deeper correction if key support fails to hold.

US midterms put fiscal policy under the spotlight, treasury sell-off raises risk

The US will hold its midterm elections - a de facto referendum on the Trump administration - on 3rd November after two years shaped by rising trade protectionism, attacks on Federal Reserve independence and, since the spring, the Iran war. Republicans are expected to take a heavy electoral hit.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.