Today, the USD/JPY rate stands at around 153.20 yen per US dollar, marking a significant shift fueled by the dollar’s strength following reports on US inflation. This has led to the yen weakening to levels not seen since the mid-1990s. A crucial development in the market was the bullish breakout past the 152 yen per US dollar barrier. This particular level has historical significance, causing interventions by the Bank of Japan and the Ministry of Finance in previous years to uphold the yen’s value, as per Reuters.
Current technical analysis of the USD/JPY chart reveals that the price has reached the upper boundary of the ascending channel, serving as a resistance level. Additionally, the RSI indicator suggests that the market is heavily overbought, potentially increasing the chances of interventions given the stance of Japanese authorities on combatting extreme fluctuations.
Market Outlook
In light of recent developments, there is a possibility of a pullback in the USD/JPY rate following a robust bullish trend, with the 152 yen level now appearing to act as a new support level. Traders can capitalize on trading opportunities across more than 50 forex markets 24/7 with FXOpen, benefitting from competitive commissions, deep liquidity, and minimal spreads starting from 0.0 pips. Whether you’re a seasoned trader or new to forex, opening an account with FXOpen can provide you with the tools and resources needed for successful trading.
It is essential to note that the views expressed in this article are solely those of the Companies operating under the FXOpen brand. This information should not be interpreted as an offer, solicitation, or recommendation for products or services provided by the Companies operating under the FXOpen brand, nor should it be taken as financial advice. Traders should exercise caution and conduct thorough research before making any trading decisions in the forex market.
Leave a Reply