USD/JPY continued to trade near recent highs, analysts note OCBC Strategists Frances Cheung and Christopher Wong.
Intervention is inevitable
“USD/JPY continued to trade near recent highs. This is also close to the highest level since 1986. There are expectations that Japanese authorities may intervene soon. While the level of the JPY is a factor to consider, officials are also focusing on the pace of depreciation as the intention of intervention is to curb excessive volatility.”
“That said, if realized volatilities start to rise or USD/JPY sees a quick move towards 164-165 (from current level), then real intervention could materialize. In the meantime, USD/JPY will look to UST yields and USD for directional cues. For USD/JPY to move lower, it would require either the USD to turn/Fed to taper or the BoJ to signal an intent to urgently normalize (rate hike or increase pace of balance sheet reduction).”
“USD/JPY continued to trade near recent highs. The path of least resistance for USD/JPY may remain to the upside, for now. The pair was last at 160.90. Bullish momentum on the daily chart intact while the RSI is in overbought conditions. Next resistance at 161.20 (Fibonacci projection of 138.2% of the 2023 low), 164 levels. Support at 157.70 (DMA of 21), 156.60 (DMA of 50).”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
