USD/JPY Rises to Highest Since 1990
USD/JPY Rises to Highest Since 1990
This morning the USD/JPY rate is around 153.20 yen per US dollar, which was facilitated by a sharp strengthening of the dollar against the backdrop of news about inflation in the United States. Thus, the yen weakened to levels last seen in mid-1990.
At the same time, an important event occurred — a bullish breakdown of the level of 152 yen per US dollar. This level is special due to the fact that in 2022, the weakening of the exchange rate to 152 yen per US dollar forced the Bank of Japan and the Ministry of Finance to intervene three times, as Reuters writes, to support the yen.
In 2023, it also acted as a barrier to growth. It also held back the market during March 2024 and early April.
But yesterday the level of 152 yen per US dollar did not survive.
At the same time, technical analysis of the USD/JPY chart today shows that:
→ the price has reached the upper boundary of the ascending channel (shown in blue), now it demonstrates its role as resistance;
→ the RSI indicator indicates that the market is strongly overbought.
At the same time, it can be assumed that the likelihood of interventions has increased, since the Japanese authorities, as stated earlier, do not rule out any steps to combat excessive fluctuations.
Considering what was written above, it is possible to assume that the USD/JPY rate may form a pullback after a strong bullish impulse, and the level of 152 looks like new support.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
This morning the USD/JPY rate is around 153.20 yen per US dollar, which was facilitated by a sharp strengthening of the dollar against the backdrop of news about inflation in the United States. Thus, the yen weakened to levels last seen in mid-1990.
At the same time, an important event occurred — a bullish breakdown of the level of 152 yen per US dollar. This level is special due to the fact that in 2022, the weakening of the exchange rate to 152 yen per US dollar forced the Bank of Japan and the Ministry of Finance to intervene three times, as Reuters writes, to support the yen.
In 2023, it also acted as a barrier to growth. It also held back the market during March 2024 and early April.
But yesterday the level of 152 yen per US dollar did not survive.
At the same time, technical analysis of the USD/JPY chart today shows that:
→ the price has reached the upper boundary of the ascending channel (shown in blue), now it demonstrates its role as resistance;
→ the RSI indicator indicates that the market is strongly overbought.
At the same time, it can be assumed that the likelihood of interventions has increased, since the Japanese authorities, as stated earlier, do not rule out any steps to combat excessive fluctuations.
Considering what was written above, it is possible to assume that the USD/JPY rate may form a pullback after a strong bullish impulse, and the level of 152 looks like new support.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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