- USD/JPY experienced minor losses due to threats of Japanese Forex intervention and US Independence Day trading lull.
- Technical indicators suggest the potential for a pullback, with the RSI nearing the overbought threshold and a negative RoC.
- If USD/JPY retraces, key supports stand at 144.00 and 143.11, while a rally could target the November highs and beyond.
USD/JPY trades with minuscule losses amidst verbal intervention by Japanese authorities, as week as choppy trading, with traders in the United States (US) out for the US Independence Day holiday. The USD/JPY is exchanging hands at 144.48 after hitting a daily high of 144.70.
USD/JPY Price Analysis: Technical outlook
The USD/JPY remains upward biased even though it cannot edge towards a new year-to-date (YTD) high of 145.07 amidst threats from Japanese authorities of steepening into the Forex markets. It should be said the Relative Strength Index (RSI) remains at overbought conditions, about to cross below the 70 levels, which could open the door for a deeper pullback.
Furthermore, the three-day Rate of Change (RoC) portrays that selling pressure is fading as it turned negative, suggesting that further downside is possible.
If USD/JPY retraces, the first support will be the 144.00 figure. A breach of the latter will expose the 38.2% Fibonacci retracement at 146.57, drawn from the lows of June 28 toward the YTD high. Once cleared, the 50% Fibo retracement will be up next at 143.11, followed by the confluence of the 20-day Exponential Moving Average (EMA) and the 61.8% golden ratio at 142.51/65.
Conversely, if USD/JPY rallies to new YTD highs above 145.00, the next resistance would be the November 10 high at 146.59, followed by the November 1 daily high at 148.82 and 2022 high at 151.94.
USD/JPY Price Action – Daily chart
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
AUD/USD bounces to near 0.6500; looks to Fed decision for fresh impetus
AUD/USD attempts a tepid bounce to near 0.6500 in the Asian session on Wednesday, though it lacks bullish conviction as traders opt to wait for the outcome of a two-day FOMC meeting before placing directional bets. Trade and rising geopolitical tensions continue to sag investors' confidence, limiting the risk-sensitive Aussie's upswing.
USD/JPY hangs close to weekly top as Fed decision looms large
USD/JPY is holding its uptrend for the fourth straight day, trading close to the weekly high near 145.50 in the Asian session on Wednesday. Reduced bets for another rate hike by the BoJ in 2025 and diminishing odds for an early US-Japan trade deal undermine the Japanese Yen. The US Dollar loses traction ahead of the Fed verdict.
Gold price flat lines below $3,400; looks to Fed for some meaningful impetus
Gold price struggles to gain traction as traders remain on the sidelines ahead of the Fed rate decision. The USD retreats from the weekly high amid Fed rate cut bets and lends support to the commodity. Trade-related uncertainties and rising geopolitical tensions further benefit the safe-haven XAU/USD.
Bitcoin, Ethereum and Ripple dips as US involvement in Israel-Iran conflict looms
Bitcoin, Ethereum and Ripple prices hovered around key levels on Wednesday after falling the previous day. The crypto market turned risk-averse amid growing concerns that the United States could intervene in the escalating conflict between Israel and Iran.
Chinese data suggests economy on track to hit 2025 growth target
China's May data was mixed with strong retail sales, but soft readings on fixed-asset investment and property price. Overall, though, data suggests that China remains on track to achieve its growth target in the first half of 2025.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.