Forex Pair – USD/JPY Technical Analysis & News
30 Aug 2022
USDJPY: NEWS & TECHNICAL Report
Yen’s Slump Toward 140 Reawakens Talk of Currency Intervention
The slide in the yen back toward the key psychological 140 per-dollar level is reigniting chatter on the likelihood that officials will intervene to support the Japanese currency.
With traders refocusing on Japan’s interest-rate gap with the rest of the world amid a chorus line of hawkish Federal Reserve commentary, the yen has tumbled close to 4% this month and traded around the 138.50 level Tuesday. That’s a hair’s breadth from a fresh 24-year low and the 140 level which some market watchers have flagged as key for policymakers.
Fed Chair Jerome Powell’s speech at Jackson Hole last week made clear concerns about the economic slowdown are not a priority, wiping out lingering optimism of a softer stance on rates. BOJ Governor Haruhiko Kuroda in contrast repeated the need for continued easing, highlighting once again the stark differences between Japan and the US that heaped pressure on the yen earlier this year.
A gauge of the yen’s implied volatility from the options market signaled about a 51% chance that the yen will touch 140 within a week, according to data compiled by Bloomberg.
USDJPY Technical Analysis: Daily Chart
In the daily charts, USDJPY is trading in an up channel. USDJPY is currently trading above all SMA.
RSI is in the overbought zone which indicates mild bearishness. MACD is currently above zero which indicates bullishness.
Its immediate support is 137.768 & the resistance level is at 139.00.
USDJPY will trade in an up channel until there is a trend reversal.
How to Trade USDJPY this Week:
USDJPY will follow the uptrend until its trend reversal. So, remain bullish on USDJPY.