USD/JPY Price Analysis: Rising up in channel towards intervention zone

USD/JPY is in a long, intermediate and short-term uptrend.
The pair is reaching the “intervention zone” where the Japanese authorities previously intervened.
As such, there is a growing risk of intervention occurring again and a correction evolving.

Joaquin Monfort FXStreet

USD/JPY is currently trading in the 158.50s as it continues rising up in an ascending channel. It is now quite close to 160.32, the April 26 high – its highest level since 1986.

USD/JPY Weekly Chart

USD/JPY is now close to the “intervention zone” (red shaded band) around where the Japanese authorities intervened to support the Yen on April 29 and May 2, according to data from the BoJ. This can be seen as the long red candle that represents the last week in April.

On Thursday, Japan’s top currency diplomat, Masato Kanda, warned, “The government will respond to excessive currency moves”, adding that, “There is no limit for forex intervention resources”.

From a purely technical point of view the trend is bullish on all time frames and given the saying that “the trend is your friend” it is more likely than not to continue higher.

However, the USD/JPY is a special case because of the high risk of market manipulation by the Japanese authorities. As such, traders should be cautious before assuming the pair will simply go higher as the trend extends.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

EUR/USD tests 1.1700 barrier after EMAs rebound

EUR/USD edges higher after registering modest losses in the previous session, trading around 1.1700 during the Asian hours on Thursday. The technical analysis of the daily chart shows that the pair remains within the descending channel pattern, suggesting an ongoing bearish bias.

GBP/USD strengthens above 1.3400 as UK inflation beats forecasts

The GBP/USD pair gains ground to near 1.3435 during the early European session on Tuesday. The Pound Sterling edges higher against the US Dollar as UK inflation rose more than expected in December. Markets might turn cautious later in the day ahead of a slew of US economic data.

Gold weakens as safe-haven demand fades on Trump's U-turn

Gold extends the overnight pullback from the vicinity of the $4,900 mark, or a fresh all-time peak, and drifts lower through the Asian session on Thursday, snapping a three-day winning streak. The global risk sentiment gets a strong boost in reaction to US President Donald Trump's U-turn on Greenland and easing geopolitical tensions.

Top Crypto Gainers: Canton, MYX Finance, Pump.fun rise as the market steadies

Canton, MYX Finance, and Pump.fun are leading the recovery over the last 24 hours as the broader cryptocurrency market takes a breather after sharp losses. Technically, the recovering altcoins are closing toward key resistances as selling pressure eases.

TACO Wednesday and the great market exhale

Markets did not so much trade on Wednesday as they collectively unclenched. After a bruising bout of headline-induced indigestion, every major asset class caught a bid at once. Stocks up. Bonds up. Gold up, then cooling. Crypto rebounding. Crude firming. Even the dollar found its feet.

Axie Infinity extends gains as bullish momentum targets $3

Axie Infinity (AXS) extends its gains by 8%, trading above $2.56 at the time of writing on Thursday, after rallying over 37% this week. The bullish price action is further strengthened by rising whale accumulation volume.