USDJPY encounters some supply and snaps a three-day winning streak to the YTD high.
The USDJPY pair falls during the Asian session on Friday. Breaking a three-day winning streak to its highest level since October 2022. Around the 150.75-150.80 zone achieved the day before. Spot prices, on the other hand, manage to stay above the crucial level of 150.00. As traders eagerly await the US PCE Price Index before positioning. For the following step of a directed maneuver.
Fears of intervention boost the USDJPY and put pressure on the pair in the face of weak USD price movement.
Meanwhile, suspicions that the Japanese government will interfere in FX markets to halt. Further weakening in the Japanese Yen (JPY) put some pressure on the USDJPY pair. Amid muted US Dollar (USD) price movement put some pressure on the USDJPY pair.
The differing policy outlooks of the Fed and the BoJ should limit the downside ahead of the US PCE Price Index.
A significant divergence in the monetary policy stances of the Fed and the Bank of Japan (BoJ) should assist limit the downside. Investors may also be hesitant to make large wagers before of next week’s central bank events. Which include the BoJ meeting on Tuesday. And the important FOMC decision on Wednesday.
Technical Outlook
Technically, the overnight intraday drop demonstrated some resistance below the 100-hour Simple Moving Average (SMA). The said support, which is now valued at The 150.00 level should now serve as a critical point for intraday traders. Below which the USDJPY pair might accelerate its decline towards ascending trend-line support near 149.65. Some follow-through selling will be viewed as a new trigger for bearish traders. Paving the way for a drop towards the 149.30 intermediate support level before spot prices fall to the 149.00 round figure.
The bearish trend might be carried further to the next key support in the 148.70 region. On the way to the 148.25 horizontal zone and the 148.00 level. The USDJPY pair may eventually fall below 147.30-147.25. Or the monthly swing low reached on October 3.
On the other hand, the YTD peak, which was reached on Thursday in the 150.75-150.80 range. Appears to be acting as an immediate barrier ahead of the 151.00 mark. Some follow-through buying might take the USDJPY pair closer to 152.00, or a multi-decade high reached in October 2022.
