Japanese Yen Technical Forecast: Is the USD/JPY Rally Over? – THAIFRX.com

US Dollar Japanese Yen USD/JPY – Technical Forecast:

• USD/JPY breaks through key support.

• Falling indicates that a bra can be worn temporarily.

• How much is the downside USD/JPY? And what is the main level to watch?

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USD/JPY Short Term Technical Outlook – Neutral

Thursday’s key support has lifted USD/JPY. So the question arises how much can be corrected to be lower?

USD/JPY hit a 32-year high of 151.94 on October 21, up more than 30% from the previous year when the Bank of Japan reported its second intervention this year. (Policymakers say it will participate on September 22 for the first time since 1998.) On Thursday, the pair fell below the horizontal trend line support at 145.00-145.90 It confirms that upward pressure has faded in the short term.

USD/JPY Quarterly Chart

Charts created using TradingView.

since the beginning of this month This column has highlighted the possibility of a pause in the multi-month rally of USD/JPY as it experiences significant resistance on the long-term chart. Recently, a warning was issued that the penetration rate is lower. 145.00-145.90 increases

USD/JPY is at a significant point right now: a horizontal trend line from July will be around 139.50, as well as the 89-day moving average. There are two scenarios that can play out in the short term.

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USD/JPY Daily Chart

Photo2.png

Charts created using TradingView.

The first scenario is that USD/JPY downside is limited and moves up from near 139.50 This is not surprising as the pair rebounded in August under similar conditions (see chart) still falling This is suggesting less likelihood of imminent change. Both can agree 137.00-138.00 In a short time before finding the floor. Considering the strength of the progress from a medium-term perspective, There is a high chance that this situation will end.

The second scenario is a bit of a pessimism. USD/JPY may fall all the way to the 200-day moving average (now around 132.75), but may not break the August lows of 130.40.

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— Written by Manish Jaradi, Strategist at DailyFX.com

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