Chart of the day - USDJPY (18.01.2024)

Japanese Yen (JPY) has recently returned to a downward trend after a dynamic rebound at the end of the year. Although the JPY is slightly recovering today, the perspectives for the second half of January and February are not very promising. Currently, everything indicates that the Bank of Japan (BoJ) will maintain its dovish stance in monetary policy. Moreover, there is an increased likelihood that the US Federal Reserve will not lower interest rates in March following strong retail sales data. These factors could further support the US dollar, potentially limiting the appreciation of the yen.

Looking at the USDJPY quotes, we can notice a strong upward movement that started in the new year. The quotes have reacted significantly, rising to the level of 140,000, and currently, the bulls may try to retest the key barrier at the level of 150,000. This area coincides with the lower limit of the recent upward channel. On the other hand, in case of activation of the supply side, the lower limit of the current movement could be the level of 145,000.

Source: xStation 5