USD/JPY Price Forecast: Dollar recovery stalls below 151.40
- The US Dollar bounced up from 150.50 lows against the Yen but remains capped below 151.40 so far.
- Investors' concerns about the simmering tensions between US and China are hurting the US Dollar.
- In Japan, political uncertainty muddies the BoJ's forward path and leaves the Yen looking for direction.
The US Dollar is showing a moderate recovery from Wednesday’s lows at 150.50 area against the Japanese Yen, USD bulls, however, have failed to find any significant acceptance above 151.40, which leaves the near-term bearish trend intact.
The Dollar is struggling to regain lost ground against traditional safe-havens like the Japanese Yen on Thursday, as flaring up tensions between US and China are keeping investors on their heels.
The Japanese Yen, however, is failing to take advantage of US Dollar’s weakness. Japan’s political scenario remains highly uncertain as the exit of the Komeito party from the ruling coalition has curbed chances of the recently elected LDP Leader, Sanae Takaichi, of becoming Prime Minister any time soon.
Technical Analysis: Further depreciation remains on the cards
The technical picture shows a frail USD rebound . Relative Strength Index in the 4-hour chart remains below the key 50 level and upside attempts are being contained below the 151.40 level.
Faiñlutre to extend gains beyond that level might entice sellers to retest Wednesday’s lows at the mentioned 150.50 area. Further down, the next support emerges at the 150.00 psychological ñlevel, and the 149.70 intraday area.
To the upside, a sc¡onfirmation above 151.40 would clear the path towards intra-day resistance at the 151.90 area ahead of the October 14 highs, at the 152.60 area.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.09% | -0.24% | 0.09% | -0.03% | -0.04% | -0.25% | 0.04% | |
| EUR | 0.09% | -0.15% | 0.18% | 0.05% | -0.03% | -0.18% | 0.10% | |
| GBP | 0.24% | 0.15% | 0.37% | 0.20% | 0.09% | -0.03% | 0.28% | |
| JPY | -0.09% | -0.18% | -0.37% | -0.10% | -0.06% | -0.35% | -0.04% | |
| CAD | 0.03% | -0.05% | -0.20% | 0.10% | 0.00% | -0.23% | 0.05% | |
| AUD | 0.04% | 0.03% | -0.09% | 0.06% | -0.00% | -0.15% | -0.00% | |
| NZD | 0.25% | 0.18% | 0.03% | 0.35% | 0.23% | 0.15% | 0.30% | |
| CHF | -0.04% | -0.10% | -0.28% | 0.04% | -0.05% | 0.00% | -0.30% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
