The USDJPY currency pair, which was at a rate of 148.198, ended the day on Wednesday at 148.34, showing a 0.33% increase.

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• USD/JPY closed Wednesday at 148.34, up by 0.33%.

The pair currently trades last at 148.198.

The previous day high was 147.92 while the previous day low was 147.51. The daily 38.2% Fib levels comes at 147.76, expected to provide support. Similarly, the daily 61.8% fib level is at 147.67, expected to provide support.

On Wednesday, the USD/JPY closed with gains above 148.00 as the USD got a boost amid the hawkish Federal Reserve (Fed) stance, which fueled US yields to multi-year highs.

As expected, the US Federal Reserve kept interest rates unchanged at 5.25%-5.50%. Still, it surprised the market with its projections to keep rates at 5.1% for 2024 (revised from 4.6%), and virtually sent a message that it will keep rates at restrictive levels for a longer time. In addition, the projections for rates in 2023, via the so-called dot plots, were kept at 5.6% and signalled one last like in the remainder of the year, and markets are placing bets for it to be in December.

As a reaction, the short-term US yields rose to multi-year highs, with the 2,5 and 10-year rates advancing to 5.17%, 4.57% and 4.40%, respectively, making the US Dollar gain interest.

On the JPY’s side, eyes are on Friday’s Bank of Japan (BoJ) meeting decision. The bank has already stated that changes to monetary policy won’t be considered until local wage and inflation indicators match their projections. However, markets will look for any clues to start discounting a potential lift-off in the near term. In the meantime, as the Fed’s tightening cycle isn’t over yet, divergences between the two banks will continue weakening the Yen unless the BoJ leaves its ultra-dovish stance.

Based on the daily chart analysis, a bullish outlook is noted for USD/JPY in the near term. The Relative Strength Index (RSI) stands above its midline in positive territory, further validated by the decreasing red bars on the Moving Average Convergence Divergence (MACD). In addition, the pair is above the 20,100,200-day Simple Moving Average (SMA), indicating that the bulls are in command of the broader picture.

Support levels: 147.80, 147.10 (20-day SMA), 146.00.

Resistance levels: 148.50, 149.00, 150.00.

Technical Levels: Supports and Resistances

USDJPY currently trading at 148.21 at the time of writing. Pair opened at 147.86 and is trading with a change of 0.24 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 146.82, 50 SMA 144.15, 100 SMA @ 142.03 and 200 SMA @ 137.46.

The previous day high was 147.92 while the previous day low was 147.51. The daily 38.2% Fib levels comes at 147.76, expected to provide support. Similarly, the daily 61.8% fib level is at 147.67, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 147.61, 147.35, 147.19
• Pivot resistance is noted at 148.02, 148.18, 148.43

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