The Japanese Yen ended the week on a stronger note, with the USD/JPY pair experiencing a loss of more than 0.74%. This came amid a generally negative mood in the market, although the pair has held steady on a daily basis, currently trading at 156.85 as a ‘hammer candle pattern’ emerges.
USD/JPY Price Forecast: Technical Outlook
The price action suggests continued sideways movement, as the USD/JPY remains confined within a 300-pip range of 156.00 to 159.00. Neither buyers nor sellers have been able to push past the key support and resistance levels that define this range.
Currently, momentum indicates a bearish trend, with the 14-day Relative Strength Index (RSI) dipping below the 50-neutral mark, which suggests that sellers are gaining strength.
This creates a downward path of least resistance. The initial support level is noted at the psychological mark of 156.50. If this level gives way, the low from October 23, at 156.08, is next in sight for sellers, followed by a potential drop to the significant 155.00 level. A breach beneath that would bring the swing low from September 8, at 152.89, into play.
On the upside, the first resistance for USD/JPY appears to be at the 50-day Simple Moving Average (SMA) located at 157.57. Should there be further upward movement, the next target would be the 100-day SMA at 158.50, followed by the 200-day SMA at 159.35.
USD/JPY Price Chart – Daily
Japanese Yen Price This Week
Below is a summary of the percentage changes for the Japanese Yen (JPY) against major currencies over the past week. Overall, the Yen has gained strength against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.15% | -0.46% | -0.77% | -0.81% | -1.12% | -0.74% | -0.14% | |
| EUR | 0.15% | -0.31% | -0.56% | -0.61% | -0.88% | -0.58% | 0.03% | |
| GBP | 0.46% | 0.31% | -0.25% | -0.30% | -0.56% | -0.26% | 0.41% | |
| JPY | 0.77% | 0.56% | 0.25% | -0.05% | -0.35% | 0.02% | 0.75% | |
| CAD | 0.81% | 0.61% | 0.30% | 0.05% | -0.29% | 0.09% | 0.71% | |
| AUD | 1.12% | 0.88% | 0.56% | 0.35% | 0.29% | 0.30% | 0.94% | |
| NZD | 0.74% | 0.58% | 0.26% | -0.02% | -0.09% | -0.30% | 0.66% | |
| CHF | 0.14% | -0.03% | -0.41% | -0.75% | -0.71% | -0.94% | -0.66% |
The heat map below illustrates the percentage changes among major currencies. The base currency is indicated in the left column while the quote currency is across the top. For example, selecting the Japanese Yen from the left and tracing horizontally to the US Dollar shows the percentage change in the respective box, reflecting JPY (base) to USD (quote).
