The USDJPY pair, currently at a rate of 143.925, retreats slightly from its highest point of the year, but there is still some support preventing a significant decline.
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- USD/JPY pulls back from a fresh YTD peak, though the downside remains cushioned.
The pair currently trades last at 143.925.
The previous day high was 144.18 while the previous day low was 143.28. The daily 38.2% Fib levels comes at 143.83, expected to provide support. Similarly, the daily 61.8% fib level is at 143.62, expected to provide support.
The USD/JPY pair comes under some selling pressure during the Asian session on Wednesday and erodes a part of the previous day’s gains to levels beyond the 144.00 mark, or a fresh high since November 2022. Spot prices currently trade around the 143.80 area, down nearly 0.20% for the day, though any meaningful corrective decline still seems elusive.
Japanese officials continue to step up warnings against the recent weakness in the Japanese Yen (JPY), which, in turn, is seen as a key factor prompting some long-unwinding around the USD/JPY pair. In fact, Japanese Finance Minister Shunichi Suzuki said on Tuesday that they will watch the forex market with a sense of urgency and would respond appropriately if the currency moves became excessive. The warning was reiterated by Japan’s top currency diplomat Masato Kanda earlier this Wednesday.
Meanwhile, reports indicated that the Biden administration is considering new restrictions on exports of artificial intelligence chips to China, fueling worries about the worsening relations between the world’s two largest economies. This further benefits the JPY’s relative safe-haven status and contributes to the offered tone around the USD/JPY pair. That said, a big divergence in the monetary policy stance adopted by the Bank of Japan (BoJ) and other major central banks might cap the JPY.
It is worth recalling that BoJ Governor Kazuo Ueda recently ruled out the possibility of any change in the ultra-loose policy settings and signalled no immediate plans to alter the yield curve control measures. In contrast, Fed Chair Jerome Powell said last week that the central bank will likely raise interest rates again this year, albeit at a “careful pace”, to contain high inflation and doesn’t see rate cuts happening any time soon. This, in turn, should help limit the downside for the USD/JPY pair.
Hence, it will be prudent to wait for strong follow-through selling before confirming that spot prices have formed a near-term top and positioning for any further losses. Traders might also refrain from placing aggressive bets ahead of Fed Chair Jerome Powell and BoJ Governor Kazuo Ueda’s appearance at the ECB Forum on Central Banking in Sintra later this Wednesday. Nevertheless, the fundamental backdrop suggests that the path of least resistance for the USD/JPY pair is to the upside.
Technical Levels: Supports and Resistances
USDJPY currently trading at 143.9 at the time of writing. Pair opened at 144.08 and is trading with a change of -0.12 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 143.90 |
| 1 | Today Daily Change | -0.18 |
| 2 | Today Daily Change % | -0.12 |
| 3 | Today daily open | 144.08 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 140.88, 50 SMA 138.19, 100 SMA @ 135.88 and 200 SMA @ 137.22.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 140.88 |
| 1 | Daily SMA50 | 138.19 |
| 2 | Daily SMA100 | 135.88 |
| 3 | Daily SMA200 | 137.22 |
The previous day high was 144.18 while the previous day low was 143.28. The daily 38.2% Fib levels comes at 143.83, expected to provide support. Similarly, the daily 61.8% fib level is at 143.62, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 143.51, 142.95, 142.62
- Pivot resistance is noted at 144.41, 144.74, 145.3
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 144.18 |
| Previous Daily Low | 143.28 |
| Previous Weekly High | 143.87 |
| Previous Weekly Low | 141.21 |
| Previous Monthly High | 140.93 |
| Previous Monthly Low | 133.50 |
| Daily Fibonacci 38.2% | 143.83 |
| Daily Fibonacci 61.8% | 143.62 |
| Daily Pivot Point S1 | 143.51 |
| Daily Pivot Point S2 | 142.95 |
| Daily Pivot Point S3 | 142.62 |
| Daily Pivot Point R1 | 144.41 |
| Daily Pivot Point R2 | 144.74 |
| Daily Pivot Point R3 | 145.30 |
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