USDJPY Analysis: Rate Reaches Max of the Year

FXOpen

The uptrend in 2023 is due to the difference in the monetary policy of the Bank of Japan and the US Federal Reserve. As the chart shows, USD/JPY hit 145.22 yen per US dollar today. The last time such a rate was relevant was in November 2022 after foreign exchange interventions (marked with arrows).

Since the USD/JPY rate has again reached the level of 145 yen per US dollar, which is important for the Japanese authorities, traders expect official warnings regarding interventions, but there are none yet. Reuters reports the words of Joey Chu, head of Asian currency research at HSBC: "We believe that the Treasury will start moving in the 145-148 range."

Bullish arguments:
→ The ability of the exchange rate to recover from a sharp fall in early July indicates the strength of demand in the market.
→ The chart shows that the rate has not yet reached the upper limit of the ascending channel.
→ B→C retracement after A→B advance was less than 50%.
→ Central bank monetary policy differentials are unlikely to change any time soon.

Bearish arguments:
→ Presumably, traders may take profits from long positions, fearing currency interventions, which will slow down the current bullish trend.
→ This morning there was a false breakdown of June-July highs to force sellers to close positions and lure buyers in the wrong direction.

Important news calendar for USD/JPY (GMT+3):
→ data on inflation in Japan - on Friday, at 2:30;
→ US retail sales data - Tuesday at 15:30;
→ FOMC minutes - Wednesday at 21:30;
→ US labor market data - Thursday at 15:30.

Important levels:
→ support from the median line of the uplink;
→ psychological mark of 145 yen per US dollar;
→ support for 141.75.

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.

Latest articles

The Nikkei Index Has Risen To a Two-Month High
Indices

The Nikkei Index Has Risen To a Two-Month High


As we reported on 26th June, analysing the Nikkei 225 chart (Japan 225 on FXOpen):

→ The price is in a significant upward trend (shown by the blue channel);

→ The price may continue to rise along the median line.

Since then,

The Price of Bitcoin Today Is Once Again Above $60k
Cryptocurrencies

The Price of Bitcoin Today Is Once Again Above $60k

Analysing the long-term BTC/USD chart from 16th May, we constructed a "roadmap" for Bitcoin's price, resembling an expanding fan consisting of a median and support levels below it, and resistance levels above it.

Reviewing the BTC/USD chart last

   Weekly Market Wrap With Gary Thomson: GBP/USD, EUR/USD, USD/JPY, XAU/USD, NVDA Stock
Financial Market News

Weekly Market Wrap With Gary Thomson: GBP/USD, EUR/USD, USD/JPY, XAU/USD, NVDA Stock

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • GBP/USD Hits Four-Month
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.