- USD/JPY rebounds, gaining over 0.20% after a three-day decline, benefiting from weekend profit-taking.
- The RSI indicates a potential bottom, but buyers must surpass 144.00 for continued upward movement.
- Failure to break the significant 143.00 support may lead to further declines.
USD/JPY finally broke its three-day losing streak, rising more than 0.20% late Thursday during the North American trading session. This upward movement appears linked to traders locking in profits before the weekend combined with decreasing U.S. Treasury yields and a general lack of significant news. At the moment, the currency pair is trading around 143.96 after recovering from a low of 142.80.
USD/JPY Price Forecast: Technical Outlook
The outlook for USD/JPY suggests that buyers are preparing to push the currency pair above 143.00 in an effort to mitigate losses against the dollar. There’s some evidence pointing to a potential bottom being reached, as indicated by the relative strength index (RSI).
However, while the RSI is nearing the neutral 50 mark, it still shows bearish tendencies.
That being said, for bullish momentum to really kick in, USD/JPY needs to breach the 144.00 level. Surpassing this point would reveal significant resistance, notably the Kijun-Sen at 144.27 and the 20-day simple moving average (SMA) at 144.65. Clearing these levels could lead the pair towards the psychological barrier of 145.00.
Conversely, if USD/JPY stays below the Kijun-Sen, the bearish trend might continue. In such a case, the initial support would be 143.00, followed by 142.80, referencing the Swing Low from May 21. Should these levels be breached, the next target could be 142.35, observed as the lower end during previous daily lows on May 6.
USD/JPY Price Chart – Daily
This week’s Japanese Yen Price
The table below outlines the rate changes of the Japanese yen (JPY) against other currencies this week, indicating the yen’s strength against the U.S. dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.86% | -0.99% | -0.86% | -0.84% | -0.15% | -0.30% | -0.91% | |
| EUR | 0.86% | -0.17% | 0.05% | 0.09% | 0.83% | 0.62% | -0.05% | |
| GBP | 0.99% | 0.17% | -0.10% | 0.23% | 1.00% | 0.78% | 0.09% | |
| JPY | 0.86% | -0.05% | 0.10% | 0.02% | 0.84% | 0.76% | -0.02% | |
| CAD | 0.84% | -0.09% | -0.23% | -0.02% | 0.79% | 0.55% | -0.14% | |
| AUD | 0.15% | -0.83% | -1.00% | -0.84% | -0.79% | -0.21% | -0.87% | |
| NZD | 0.30% | -0.62% | -0.78% | -0.76% | -0.55% | 0.21% | -0.69% | |
| CHF | 0.91% | 0.05% | -0.09% | 0.02% | 0.14% | 0.87% | 0.69% |
The heatmap illustrates the percentage changes among major currencies. The selected base currency is on the left, while the analyzed currency is on the top. For instance, choosing Japanese yen from the left column and crossing to U.S. dollars shows the corresponding JPY/USD percentage change.
