empty
20.11.2024 04:36 PM
USD/JPY. Analysis and Forecast

This image is no longer relevant

Today, the Japanese yen continues its steady intraday decline against the US dollar, pushing the USD/JPY pair to a new weekly high. This occurs amid uncertainty surrounding the timing of the Bank of Japan's next interest rate hike.

Additionally, recovering yields on US Treasury bonds are boosting the US dollar, further contributing to the outflow of funds from the lower-yielding Japanese currency. Moreover, the generally positive risk sentiment undermines the yen's position as a safe-haven currency.

All fundamental factors suggest that the USD/JPY pair favors an upward trajectory. However, the possibility of intervention may limit the Japanese yen's losses ahead of speeches by influential FOMC members.

From a technical perspective, the strong overnight rebound of the USD/JPY pair indicates that the recent corrective decline from the multi-month high has run its course. Furthermore, the continued rise in the exchange rate, along with positive oscillators on the daily chart, supports the outlook for further dollar strength in this pair. The sustained price strength and a move above the key level of 155.00 confirm the positive forecast for the currency pair. Prices may then rise to the intermediate resistance at 155.70 en route to the psychological level of 156.00. Momentum could extend further, retesting the multi-month high in the area of 156.75.

On the other hand, a drop below the key level of 155.00 would encounter strong support in the area of 154.40–154.35 before the next key level at 154.00. Following that is the minimum of yesterday's session, with minor consolidation in the 153.85 level. Below that, the psychological level at 153.00 and subsequent support at 152.60 come into play. Failure to defend these support levels could lead the USD/JPY pair to decline toward the critical 200-day simple moving average (SMA).

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

NZD/USD. Analysis and Forecast

Today, NZD/USD is attracting buyers, breaking a three-day losing streak. However, its upward potential appears limited. A generally positive tone in equity markets is preventing a stronger U.S. dollar recovery

Irina Yanina 12:48 2025-01-31 UTC+2

XAU/USD. Analysis and Forecast

Yesterday, gold prices reached a new historical high, and today they remain close to that level. Investors are concerned about the potential economic consequences of President Donald Trump's tariff policies

Irina Yanina 12:46 2025-01-31 UTC+2

What to Pay Attention to on January 31? A Breakdown of Fundamental Events for Beginners

A significant number of macroeconomic events are scheduled for Friday. The main focus will be on Germany, where reports on retail sales, unemployment, and inflation will be released. Given that

Paolo Greco 07:12 2025-01-31 UTC+2

Overview of the GBP/USD Pair on January 31: Jerome Powell Answered the Key Question!

The GBP/USD currency pair traded cautiously on Wednesday evening and throughout Thursday, despite several fundamental catalysts at play. This hesitation was largely due to the market receiving the information

Paolo Greco 04:24 2025-01-31 UTC+2

Overview of the EUR/USD Pair on January 31: The ECB and the Fed Disappointed the Market

The EUR/USD currency pair traded cautiously on Wednesday evening and throughout Thursday. On one hand, the outcomes of the European Central Bank (ECB) and Federal Reserve (Fed) meetings were precisely

Paolo Greco 04:23 2025-01-31 UTC+2

Why Is Gas Becoming More Expensive?

Gas prices are rising again. The benchmark Dutch TTF gas contract has surged to €52.37 per megawatt-hour, marking its highest level since October 2023. Given the current fundamental backdrop, this

Irina Manzenko 23:49 2025-01-30 UTC+2

ECB Meeting Results and Their Impact on the Euro

The European Central Bank meeting concluded immediately after the Federal Reserve meeting. In my previous review, I mentioned that the rhetoric from Powell should have strengthened the dollar; however

Chin Zhao 23:49 2025-01-30 UTC+2

Fed Meeting Results and Key Takeaways

On Wednesday evening, the results of the first Federal Reserve meeting of the year were released, yet the market largely ignored them. It's unclear why this happened. My assumption

Chin Zhao 23:49 2025-01-30 UTC+2

USD/CAD: Analysis and Forecast

The USD/CAD pair has rebounded by more than 40 points from its intraday low today. However, spot prices fail to show a strong follow-through and remain within the familiar range

Irina Yanina 11:48 2025-01-30 UTC+2

EUR/USD. Analysis and Forecast

The EUR/USD pair continues to struggle in its attempts to capitalize on its recent rebound from the weekly low, as traders remain cautious ahead of today's much-anticipated European Central Bank

Irina Yanina 11:43 2025-01-30 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.