The USD/JPY pair experienced a moderate increase of 0.66% on Friday following a positive US employment report, reducing the likelihood of the Federal Reserve easing policy. As a result, the pair is currently trading at 156.64 after bouncing back from lows of 155.12. From a technical perspective, the pair remains consolidated with a slight upside bias, as it moved above the Ichimoku Cloud (Kumo), signaling strength from buyers. Despite the bullish momentum, there are concerns about potential intervention by Japanese authorities, which could lead to increased volatility in the market.
As the USD/JPY surpassed the June 4 high of 156.48, it could potentially target levels around 157.00 in the short term. Further strength may push the pair towards the April 26 high of 158.44 and the year-to-date high of 160.32. Conversely, if the USD/JPY drops below 156.00, it may find support at the confluence of Senkou Span A and B around 155.52/45, followed by the 50-day moving average at 154.98. A breach of the moving average could expose the bottom of the Ichimoku Cloud at around 153.40/50.
The Japanese Yen showed strength today against major currencies, as indicated in the table below. The percentage changes of JPY against USD, EUR, GBP, CAD, AUD, NZD, and CHF are highlighted, with JPY being the strongest against the New Zealand Dollar. The heat map illustrates the percentage changes of major currencies against each other, with the base currency selected from the left column and the quote currency from the top row.
In conclusion, the USD/JPY pair experienced gains following a positive US employment report, signaling a decrease in the likelihood of the Federal Reserve easing policy. From a technical standpoint, the pair is consolidating with an upward bias, as it moved above the Ichimoku Cloud. Potential intervention by Japanese authorities could lead to increased volatility. Resistance levels to watch include 156.48, 157.00, 158.44, and 160.32, while support levels sit at 155.52/45, 154.98, and 153.40/50. The Japanese Yen’s strength against major currencies further highlights market dynamics and potential trading opportunities.
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