Highlights

The JPY could keep dropping while the US currency strengthens owing to the US Fed’s aggressive policies.
Masato of Japan has stated that he will interfere with the foreign exchange market across all times whenever required.
The dollar’s value rises as the Federal Reserve decides to defer their first rate drop in the year 2024.

JPY Fundamentals

This Monday, the JPY could stretch its falling run to the ninth straight day. Last Friday, a better-than-projected U.S PMI lifted the US $, impacting the USDJPY pairing.

Masato Kanda in Japan, the Japanese leading forex diplomatic official- Indicated on today the government would initiate necessary action should there were any extreme swings within the forex domain. Kanda warned about the harmful economic consequences of these types of actions.

The US $ has gained strongly during the past week while the Japan’s ¥ continues to crumble. For all, the BoJ finds itself in a position in which it must maintain rates of interest inadequate and despite the odd talks. Possibly, action, the fact remains that this is purely related to the Federal Reserve. Obviously, the US central bank is expected to maintain conditions stiff. Along with if necessary, drop rate later the year ends.

JPY Daily Technical Analysis

Source: TradingView (USDJPY daily Plot)

Today, USDJPY duo traded at 159.70 mark. The daily graph reveals a positive partiality. And the currency cross approaching the top edge of an ascension wedge formation. Furthermore, the 14 D- Time frame RSI is above 50 mark, showing a trend towards higher continuation.

The duo will hit the mark of 160.32, set in Apr marked its highest point in nearly three decades, that marks a big hurdle.

On the negative side, the 9 D- EMA of 158.42 serves as right away support. A drop under this point might increase the downward pull on the USDJPY group. Perhaps sending it below the bottom border of the ascension band at 155.60. A fall beneath this mark might put further strain on this cross rate to challenge previous supporting at 152.80 area.

Daily Technical Indicators & Signals

Support – Pivot – Resistance