USD/JPY began to retreat after reaching a high of 152.00 in Tuesday's US trading session, bringing the pair down to 151.75. This adjustment followed comments from BoJ Governor Ueda.
On the chart, technical indicators have shown signs of support for the downward trend. Specifically, prices have broken through the SMA 20 and SMA 50 moving averages, indicating a short-term downward phase. If prices continue to decline and surpass the SMA 100, a more significant downturn could be anticipated in the near future.
However, USD/JPY remains volatile due to intervention from the Japanese government and the Bank of Japan (BoJ) in the forex market to stabilize the yen. The Japanese government has stated that it will not accept a decline in the yen at this level as it could impact businesses. Therefore, they tend to intervene in the price range between 150.00 and 152.00.
Therefore, investors need to consider and analyze various factors such as global economic and political news along with fluctuations in the price of this currency pair to ensure the most effective trading.
On the chart, technical indicators have shown signs of support for the downward trend. Specifically, prices have broken through the SMA 20 and SMA 50 moving averages, indicating a short-term downward phase. If prices continue to decline and surpass the SMA 100, a more significant downturn could be anticipated in the near future.
However, USD/JPY remains volatile due to intervention from the Japanese government and the Bank of Japan (BoJ) in the forex market to stabilize the yen. The Japanese government has stated that it will not accept a decline in the yen at this level as it could impact businesses. Therefore, they tend to intervene in the price range between 150.00 and 152.00.
Therefore, investors need to consider and analyze various factors such as global economic and political news along with fluctuations in the price of this currency pair to ensure the most effective trading.
