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

GBP/USD. Tailwinds for the Pound: Sterling Rises Amid Accelerating UK Economy

The British pound rose to a new weekly high against the US dollar on Thursday, reacting positively to the release of recent UK economic data. Most components of the report

Irina Manzenko 23:45 2025-02-13 UTC+2

The Euro is Tired of War

If the Federal Reserve can afford to slow down monetary expansion, why shouldn't the European Central Bank do the same? Statements from Bundesbank President Joachim Nagel suggest that

Marek Petkovich 23:45 2025-02-13 UTC+2

XAU/USD. Analysis and Forecast

Gold is experiencing a modest intraday increase, although it remains below the record high reached earlier this week. However, the lack of momentum is limiting further upside movement. Investor concerns

Irina Yanina 11:36 2025-02-13 UTC+2

GBP/JPY: Analysis and Forecast

The GBP/JPY pair has been demonstrating a steady recovery this week, rebounding from around 187.00, the lowest level since September 2024. On Thursday, the pair extended its positive momentum

Irina Yanina 11:33 2025-02-13 UTC+2

What to Pay Attention to on February 13? A Breakdown of Fundamental Events for Beginners

A significant number of macroeconomic events are scheduled for Thursday, but few are truly important. The main focus will be on the UK GDP data for Q4 and the industrial

Paolo Greco 07:22 2025-02-13 UTC+2

Overview of the EUR/USD Pair on February 13: Jerome Powell Fails to Impress Twice

The EUR/USD currency pair continued to trade calmly on Wednesday. Analyzing the 4-hour timeframe, it's evident that the price is contained within a triangle pattern, gradually consolidating before a potential

Paolo Greco 03:58 2025-02-13 UTC+2

Overview of the GBP/USD Pair on February 13: The Dollar is Destined to Rise

The GBP/USD currency pair has been on an upward trend for most of Wednesday, though at a slow pace. However, the market experienced a significant reaction following the release

Paolo Greco 03:58 2025-02-13 UTC+2

EUR/USD: Inflation, the Federal Reserve, and Market Expectations

Inflation in the U.S. has accelerated again. The Consumer Price Index (CPI) report released on Wednesday favored dollar bulls, with all components exceeding expectations. Given recent statements by Federal Reserve

Irina Manzenko 23:36 2025-02-12 UTC+2

Has the Euro Forgotten About Parity?

At the end of 2024, many analysts were discussing the possibility of EUR/USD reaching parity. The U.S. economy was noticeably stronger than its European counterpart, with the Federal Reserve's December

Marek Petkovich 23:36 2025-02-12 UTC+2

EUR/JPY: What Are the Prospects for Further Growth?

This week, the EUR/JPY pair has been showing a steady recovery from its lowest level seen since September 2024. Today, the pair continues its upward momentum for the third straight

Irina Yanina 10:53 2025-02-12 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.