The USDJPY pair is testing a key resistance and has once again risen above the level of 150 JPY per USD. Today, the Japanese yen has halted its decline, but the losses are currently not being recovered. The Japanese currency is consolidating before the next move. Today, in the first part of the day, leading officials in Japan commented about the current state of the market. However, the verbal intervention was not aimed at strengthening the currency, and politicians seem to be increasingly accepting the extremely weak yen.
Japanese Finance Minister Shunichi Suzuki refused to comment on the rapid weakening of the JPY in the market and possible BoJ intervention. The Deputy Minister of Finance for International Affairs Masato Kanda was somewhat more hawkish, noting that part of the current movements in the forex market is clearly speculative and undesirable. The statements of both politicians were rather mild and did not suggest a desire for immediate currency strengthening.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appTechnical Analysis of USDJPY (D1)
USDJPY has returned above the key level of 150, which, as late as the end of 2022, caused serious reactions from politicians and the BoJ. Although we do not observe such a reaction now, on the chart, we can notice testing of key levels that historically started corrections. Moreover, at the moment, USDJPY is testing from below the lower limit of the last uptrend. This zone coincides with the resistance area at levels 150,000-151,800, and if we see a stronger downward reaction here, we can expect a correction at least in the short term. For this reason, it is worth keeping an eye on the level of 151,800 as a critical point for the continuation of the upward movement and the level of 145,000 as a potential range for a possible correction.
Source: xStation 5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
