JPY Recovers vs USD But Faces Resistance Near 149.00.
Japanese Yen recovers from multi-month lows against the U.S. Dollar, though upside appears constrained.
FUNDAMENTAL OVERVIEW:
The Japanese Yen (JPY) edged higher from its lowest level since early April against the U.S. Dollar on Wednesday, though its recovery appears limited. Ongoing trade uncertainties and reduced expectations of an imminent Federal Reserve rate cut have dampened market sentiment, prompting mild safe haven flows into the JPY. A slight pullback in the U.S. Dollar also weighed on USD/JPY, preventing it from holding gains above the 149.00 level.
However, expectations that the Bank of Japan (BoJ) will refrain from hiking rates this year—amid concerns over the economic impact of rising U.S. tariffs—continue to cap the Yen’s upside. Political uncertainty ahead of Japan’s July 20 House of Councillors election adds further hesitation among JPY bulls. Additionally, with U.S. inflation showing modest strength, investors anticipate a delay in Fed rate cuts, supporting the Dollar and keeping the potential for dip-buying in USD/JPY intact.
USD/JPY TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
USD/JPY is trading within a down channel.
USD/JPY is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Positive trend.
Immediate Resistance level: 149.25
Immediate support level: 147.65
HOW TO TRADE USD/JPY
USD/JPY, after trending lower, found support and reversed to the upside. The pair has since broken above the previous day’s high and a key resistance level, maintaining strength above that zone. Currently, the price is pulling back from intraday highs and approaching a support area—if this zone holds, the pair could resume its upward trajectory.
