News & Analysis / Analysis / USD/JPY Price Analysis: Consolidation ahead of US News

USD/JPY Price Analysis: Consolidation ahead of US News

FXOpen

This morning, news about inflation in Japan was published. It did not bring any surprises — inflation in Japan is gradually weakening as expected. Core CPI in annual terms: actual = 2.3%, forecast = 2.5%, a month ago = 2.6%, a year ago = 3.0%.

We also note that the official position is aimed at preventing further weakening of the yen, as the USD/JPY price has risen more than 7% since the beginning of 2024 — very close to a 32-year high. Thus, Japanese Deputy Finance Minister for Economic Affairs Masato Kanda yesterday warned that the current weakening of the yen does not correspond to fundamental indicators and is clearly caused by speculation. He concluded that the authorities would take appropriate measures against excessive fluctuations.

However, neither verbal interventions nor the publication of Japanese Core CPI values led to strong fluctuations in the USD/JPY market. Why so?

From a fundamental analysis point of view, market participants are keeping their focus on the publication of Core PCE Price Index values in the US, as well as the Fed Chairman's speech — both events are scheduled for Friday (at 15:30 and 18:30 GMT+3, respectively).

From a technical analysis point of view, the market stabilization is quite natural, since the USD/JPY price today is near the median line of the ascending channel (shown in blue), which describes the trajectory of 2024. The market seems to be cooling down after the RSI indicated it was overbought on March 20th.

It is the events of Friday that can bring the market out of the current equilibrium state (despite the fact that Friday is a day off in many countries, volatility can be high).

In case of bearish activity, the USD/JPY price may be supported by a zone consisting of:
→ the lower line of the border of the ascending channel;
→ psychological level of 150 yen per US dollar;
→ support from a local minimum of about 150.30 yen per US dollar.

If the market goes out of balance towards the upper boundary of the channel, market sentiment will likely be influenced by expectations of the Bank of Japan's reaction to an excessively weak yen — and this may not only be verbal interventions.

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

Instrument
Live ECN bid
Live ECN ask
Action
EURUSD
1.08777
1.08803
Trade
GBPUSD
1.29275
1.29374
Trade
AUDUSD
0.63223
0.63247
Trade
USDJPY
148.620
148.645
Trade
USDCAD
1.43605
1.43721
Trade
More
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

Shares

Intel (INTC) Shares Surge by Approximately 14%

As shown in the Intel (INTC) stock chart:

→ Trading opened yesterday with a strong bullish gap.
→ By the end of the session, shares had risen by approximately 14% compared to the previous day's closing price.

According to Dow Jones Market

Commodities

Gold Price Nears $3,000 for the First Time in History

As shown in the XAU/USD chart today, gold is at a record high, just $5 away from the key psychological level of $3,000. Moreover, on the futures market, COMEX data indicates that gold futures have already surpassed this

What Is Dollar-Cost Averaging (DCA) in Investing and Trading?
Trader’s Tools

What Is Dollar-Cost Averaging (DCA) in Investing and Trading?

Dollar-cost averaging (DCA) is a popular strategy used by investors and traders to manage market fluctuations and build positions over time. Instead of trying to time the market, DCA focuses on consistent, regular investments regardless of price movements. This article