Analysis of USD/JPY: Yen Strengthens by 5.5% Against US Dollar in 2 Weeks

FXOpen

On Thursday, 11 July, the USD/JPY exchange rate was above 161, and today it is below 153.

According to Reuters, this could be attributed to effective intervention by the Bank of Japan.

While intervention was anticipated when the yen weakened to extreme levels not seen since 1983, Tokyo authorities were cryptic in their comments, maintaining uncertainty, making it harder for investors to predict when and how they might intervene.

As indicated by today's USD/JPY chart:

→ The ascending trend channel (shown in black) that has been in place since 2023 is losing its relevance.

→ Red circles indicate pivotal points where significant price action occurred, helping to define the contours for a descending channel (shown in red).

→ The USD/JPY rate is near the lower boundary of the red channel. According to technical analysis, this boundary tends to act as support for the price – a bullish argument suggesting that the decline might slow down here.

Whether there will be a rebound from the lower line of the descending channel or the bears will manage to break through the 152 level (where the price found support in May) will largely depend on next week’s news: Tuesday will bring reports on inflation and unemployment in Japan, and Wednesday will see statements from the Bank of Japan regarding the interest rate.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Commodities

Market Analysis: Gold and WTI Crude Oil Prices Regain Momentum

Gold price started a fresh increase above the $2,665 resistance level. WTI Crude oil prices climbed higher above $77.00 and might extend gains.

Important Takeaways for Gold and WTI Crude Oil Prices Analysis Today

· Gold price started a

Forex Analysis

GBP/USD Analysis: Bulls Find Renewed Hope

This morning, UK inflation data was released, as reported by ForexFactory:

  • Consumer Price Index (CPI): actual = 2.5%, expected = 2.6%, previous = 2.6%;
  • Core CPI: actual = 3.2%, expected = 3.4%, previous = 3.5%.

The foreign exchange market reacted

Martingale and Anti-Martingale Position Size Trading Strategies
Trader’s Tools

Martingale and Anti-Martingale Position Size Trading Strategies

Martingale and Anti-Martingale trading strategies are contrasting approaches to risk management. While one doubles down on potential losses to recover with a single effective trade, the other scales up on potentially effective trades and reduces positions when suffering losses. Both

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.