USD/JPY daily chart
This week has seen a recurring theme of the Japanese Yen garnering some buying orders in currency deliveries from Asia to Europe. And overall, the Yen itself has held up across the board, even as the dollar has also held up against other currencies in the major currency zone. And this is despite government bond yields remaining relatively stable over the past few days.
There are not many big factors behind the decline of USD/JPY. However, it can be said that the desire to buy low has been significantly reduced after Japan’s market intervention on July 11th and 12th. As a result, it has fallen below the main trendline support (white line) this year. And inevitably, the positive momentum of USD/JPY has weakened significantly.
Today’s latest decline is not only threatening to drop below the 155.00 level, but it is also extremely significant.
However, the 100-day moving average at 155.35 (red line) is also likely to fall at this point, and in the bigger picture, buyers will likely relinquish further control of the pair. The last time the pair traded below the 100-day moving average was back in March.
The June low at 154.52 is the next minor support level to watch, which could occur before reaching the 38.2 Fib retracement level at 153.66.
It appears the yen may continue to strengthen at least until the Bank of Japan’s policy meeting next week approaches. Selling the facts Would you like to exchange it for yen here?
