Thursday, November 21, 2024
1.4 C
London

USDJPY Flipped Below 152 Amid BoJ Keeps Rate Unchanged

FxNews—The Japanese yen strengthened beyond 152.4 per dollar on Thursday, rebounding from recent three-month lows. This move came after the Bank of Japan kept its policy rate steady at 0.25%, which was expected.

The central bank also restated that it expects inflation to remain around its 2% target for the next few years, signaling a steady approach toward policy normalization.

The Japanese yen erases some of its losses against the U.S. dollar.
The Japanese yen erases some of its losses against the U.S. dollar.

BOJ Governor’s Speech Holds Key to Yen’s Future

Market participants are now awaiting insights from BOJ Governor Kazuo Ueda’s post-meeting briefing, hoping for hints about when and how quickly future rate hikes might occur. Over the past month, the yen has dropped nearly 7% against the dollar, its most significant monthly loss since November 2016. This decline has been driven by a strong dollar and rising U.S. Treasury yields.

Additionally, a political shift in Japan has increased uncertainty around the nation’s fiscal and monetary policies, adding to the yen’s recent challenges.

USDJPY Technical Analysis – 31-October-2024

USDJPY Technical Analysis - 31-October-2024
USD/JPY targets 151.4 after closing below 152.7.

The currency pair trades at approximately 152.0, stabilizing below the 50-period simple moving average. Additionally, the Awesome Oscillator flipped below the signal line, strengthening the bear market. That said, the Stochastic and RSI 14 have room left to become oversold, meaning the current downtick momentum is likely to resume.

Despite the bearish signals from these indicators, the USD/JPY price is above the 100-period simple moving average, meaning the primary trend is bullish.

Can USD/JPY Hold Below 152.7 for More Losses?

USD/JPY Bearish Scenario
USD/JPY Bearish Scenario

The immediate resistance is at the October 30 low, the 152.7 mark. From a technical standpoint, the current bearish wave resumes to the next support area at 151.4 if USD/JPY remains below 152.7.

Furthermore, if the selling pressure exceeds 151.4, the next bearish target could be 153.3, the October 17 high.

Bullish Scenario

The primary trend is bullish because USD/JPY is above the 100-period simple moving average. As mentioned earlier, the immediate resistance rests at 152.7. If bulls pull the price above 152.7, the uptrend will likely resume. In this scenario, the October high at 153.9 could be revisited initially.

Key Support and Resistance Levels

Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.

  • Support: 151.4 / 150.3 / 149.0
  • Resistance: 152.7 / 153.9

Latest Posts

Crude Oil Prices Test $69.5 Amid Escalating Global Tensions

WTI crude oil futures rose to approximately $69.5 per...

USDCHF Rises Amid Unexpected Drop in Swiss Inflation

The USD/CHF pair bounced from the %50 Fibonacci retracement...

Iron Ore Prices Surge to $102 Amid China Demand

Iron ore prices for cargoes containing 62% iron have...

November Boost in France Manufacturing Climate

In November 2024, France's manufacturing climate indicator rose to...

France Business Climate Slips in November

In November 2024, France's business climate index slipped to...

Crude Oil Prices Test $69.5 Amid Escalating Global Tensions

WTI crude oil futures rose to approximately $69.5 per...

Gold Surges Above $2650 as Russia-Ukraine War Escalates

Gold prices exceeded the 38.2% Fibonacci level, trading at...

Gas Prices Near Year High as Cold Snap Threatens Europe

Prices for European natural gas futures approached €47 per...

U.S. Gasoline Futures Hit Two-Week High at $2.05

Gasoline futures in the U.S. peaked at $2.05 per...

Silver Rally Halts at $31.4 Amid Solar Panel Surplus

FxNews—Silver prices eased to $30 per ounce as the...

Oil Prices Stable $69 as Geopolitical Risks Soar

FxNews—WTI crude oil futures remained above the $66.8 critical...

WTI Crude Dips to $68.5 as Norway Field Restarts

On Tuesday, WTI crude oil futures decreased to $68.5...

Silver Eyes $31.3 Amid Changing Fed Policy Views

FxNews—Silver prices test the $31.3 resistance, above the 50-period...
spot_imgspot_img