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USD/JPY Price Forecasts: Previous support at 152.35 is holding bulls

  • The US Dollar met resistance at 152.35 against the Yen after bouncing from 151.10 lows.
  • The Japanese Yen remains on its back foot amid growing political uncertainty in Japan.
  • USD/JPY: Failure to extend above 152.35 might trigger a reversal to the 150.30 area.

The US Dollar is trading higher against the Japanese Yen on Monday. The Pair has rallied through 152.00 to pare some of last week’s losses, but it is failing to find acceptance above a previous support area, at 152.35 during the European trading session.

Political uncertainty in Japan has punished the Japanese Yen on Monday. The Komeito party confirmed this weekend its decision to leave the ruling coalition with the LDP amid the divergences with its new leader, Sanae Takaichi, which leads the country deeper into a political crisis.

Technical analysis: Rejection at 157.35 might trigger a deeper correction

USD/JPY Chart

A look at the 4-hour chart reveals that the bullish momentum is losing steam, although the Relative Strength Index (RSI) is still above the 50 level. A failure to extend gains above 152.35, however, might give bulls fresh hopes to retest intra-day lows at the 151.70 area.

Further down, bears would be attracted for Friday’s low, at 151.10, ahead of the area October 7 low, near 150.30, which is the target os an A-B=C-D correction 


To the upside, a confirmation above the mentioned 152.35 area cancels this view and clears the way towards the October 9 highs, right above 153,20. Above here, the next target would be the 127.2 Fibonacci retracement of Friday’s sell-off, at 183.85.

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.

USDEURGBPJPYCADAUDNZDCHF
USD0.22%0.10%0.14%0.05%-0.18%0.18%0.26%
EUR-0.22%-0.12%-0.04%-0.19%-0.32%-0.03%0.03%
GBP-0.10%0.12%0.14%-0.06%-0.22%0.08%0.13%
JPY-0.14%0.04%-0.14%-0.16%-0.38%0.07%0.07%
CAD-0.05%0.19%0.06%0.16%-0.27%0.15%0.19%
AUD0.18%0.32%0.22%0.38%0.27%0.30%0.34%
NZD-0.18%0.03%-0.08%-0.07%-0.15%-0.30%0.04%
CHF-0.26%-0.03%-0.13%-0.07%-0.19%-0.34%-0.04%

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

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.

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