USD/JPY Price Forecast: Testing support at 153.25 previous resistance
- The Dollar fails at 154.50 and retreats to the 153.25 area against a firmer Yen.
- The Japanese Finance Minister warned about a potential intervention and boosted the Yen across the board,
- Technically, the USD/JPY broader bullish trend remains intact.
The US Dollar bears gained the upper hand on Tuesday, after failing to break above the 154.45 resistance area, pulled the pair lower during the European trading session, to test support at the 153.25 area, where bulls were capped on October 9 and 27.
The risk-averse market, with the main European equity indexes posting losses beyond 1% and the verbal intervention of the Japanese Finance Minister, Satsuki Katayama, warning that Japanese authorities are monitoring markets "with urgency," has provided some oxygen to an ailing Japanese Yen.
Technical Analysis: USD/JPY remains bullish while above 153.00
The pair has broken the small triangle pattern around 154.20 and is now testing support at a previous resistance area at 153.00. Technical indicators are turning lower, as the Relative Strength Index dipped below the 50 level, but the bullish structure from mid-September lows remains in place.
Bears should push prices below the 153.00 area, where the 61.8% Fibonacci retracement of the October 29-30 bull run crosses trendline support. A confirmation below here would increase pressure towartds the October 30 low, at 152.20.
To the upside, the October 30 and November 4 highs, near 154.50, are likely to challenge bulls ahead of the February 13 high, at 154.85. Further up, the 127.2% extension of last week's rally, at 155.30, emerges as a potential target.
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.13% | 0.53% | -0.46% | 0.13% | 0.56% | 0.72% | 0.08% | |
| EUR | -0.13% | 0.40% | -0.60% | 0.00% | 0.44% | 0.58% | -0.05% | |
| GBP | -0.53% | -0.40% | -0.98% | -0.39% | 0.04% | 0.19% | -0.45% | |
| JPY | 0.46% | 0.60% | 0.98% | 0.61% | 1.04% | 1.19% | 0.55% | |
| CAD | -0.13% | -0.00% | 0.39% | -0.61% | 0.43% | 0.58% | -0.06% | |
| AUD | -0.56% | -0.44% | -0.04% | -1.04% | -0.43% | 0.15% | -0.48% | |
| NZD | -0.72% | -0.58% | -0.19% | -1.19% | -0.58% | -0.15% | -0.64% | |
| CHF | -0.08% | 0.05% | 0.45% | -0.55% | 0.06% | 0.48% | 0.64% |
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 Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (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.
