#USDJPY @ 150.436 Japanese Yen declines against the US Dollar due to broad risk aversion on Israel-Palestine tensions.
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]
- Japanese Yen declines against the US Dollar due to broad risk aversion on Israel-Palestine tensions.
The Japanese Yen (JPY) weakness against the US Dollar has surged on Thursday as USD/JPY reclaimed the 150.40 level after drifting lower in the late US session. This is still well below the pair’s intraday high of 150.7780.
USD/JPY yo-yos in a wide range versus the US Dollar (USD) as numerous factors impact the pair, from increasing tensions on the Gaza strip to the release of key US data and the rumored intervention of Japanese authorities in the FX markets.
The Yen weakened initially versus the USD, which benefited from safe-haven flows and higher US yields. JPY was later supported by probable intervention from the Japanese Ministry of Finance (MoF) after the USD/JPY rate crossed the 150 defensive line – a level traditionally defended by the MoF.
US data on Thursday shows an unexpected rise in America’s GDP to 4.9% in Q3 on an annualized basis, solidly beating consensus estimates of 4.2%. US Durable Goods Orders rose 4.7% versus estimates of 1.5% and Initial Jobless Claims increased to 210K versus 208K expected. Despite being mostly positive, the data fails to help the Dollar, and the US Dollar Index (DXY) registers a drop after the data, with DXY down a 10th of a percentage point just over an hour after the releases.
USD/JPY has broken above the key 150 psychological level on Thursday as the overall uptrend extends. The pair is bullish on a long-term, intermediate and short-term basis.
The uptrend is biased to continue given the absence of reversal signs and the next major target is at the 152.00 highs achieved in October 2022.
The pair has completed what appears to be an ascending triangle on the daily chart and broken above the 150.16 highs of October 3, confirming a breakout. Although it has not been a particularly decisive breakout – Thursday’s breakout candle is a ‘Doji’ indicating indecision – price will, nevertheless, probably continue higher, given the overarching uptrend. The triangle’s technical target is at around 152.
US Dollar vs Japanese Yen: Daily Chart
The Moving Average Convergence Divergence (MACD) momentum indicator is showing bearish divergence with price when compared with the October 3 high. This happens when price makes a higher high, but momentum fails to follow suit. This is indicative of underlying weakness in the upmove. This nuances the bullish analysis and increases the risk the triangle breakout may be ‘false’.
A re-break above Thursday’s highs of 150.80 would provide fresh confirmation of the continued advance.
Triangles are sometimes the penultimate formations in a trend, suggesting the chance the current uptrend may be getting near to its culmination point.
[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.
- EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
- EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group
