USD/JPY Price Analysis: Contained around 148.70, as Japanese FX intervention looms
- Despite an upbeat sentiment, USD/JPY is almost flat as rumors of Japanese intervention in the FX market loom.
- The USD/JPY daily chart shows the pair as overbought as the RSI above 70 gives a respite to USD/JPY bulls.
- Near-term, an ascending triangle in the hourly targets the USD/JPY will rise to 149.36-50.
The USD/JPY extends its gains, for the ninth consecutive trading day, bolstered by renewed Bank of Japan (BoJ) dovish commentary during the last week, despite the Minister of Finance Suzuki and Japan’s PM Kishida’s efforts to propel the Japanese yen. At the time of writing, the USD/JPY is trading at 148.75, above its opening price by 0.01%.
USD/JPY Price Forecast
The USD/JPY printed a fresh 32-year high of 148.89, as the pair closes to the 150.00 figure, but fears of another FX intervention by Japanese authorities refrain traders from opening fresh longs on the USD/JPY. It should be noted that the daily chart depicts oscillators at overbought conditions, namely the Relative Strength Index (RSI), which at 76.74, is almost flat, giving a respite for USD/JPY shorts.
The USD/JPY one-hour chart delineates the pair in consolidation, hoovering around the 20-EMA, which, sitting below the exchange rates, suggests the pair is upwards. However, price action’s printing lower highs and higher lows signal that it could be forming an ascending triangle, which would pave the way for further gains.
A break above 148.89 will expose the 149.00 figure. Once cleared, the following resistance would be the R1 daily pivot and also the ascending-triangle measure objective at 149.36, immediately followed by 149.50 and the 150.00 figure.
USD/JPY Key Technical Levels
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
