USDJPY recovers somewhat intraday from a one-week low reached.

USDJPY pair finds some buyers at 148.15, or a one-week low reached during the Asian session on Tuesday. And rises to a new daily high in the last hour. Spot prices, on the other hand, have remained constrained in a typical range held over the last week or two. And are presently trading in the 148.60-148.65 range, up little than 0.10% on the day.

The rebound has been hampered by falling US bond rates and weaker USD demand.

The risk tone is typically favorable. The safe-haven Japanese yen (JPY) has been seen undercutting. And turning out to be a crucial component offering some support to the USDJPY pair. However, the intraday upswing lacked positive confidence in the face of weak US Dollar (USD) demand. Reduced expectations on the Federal Reserve (Fed) raising interest rates further lead to a further decrease in US Treasury bond yields. Which keeps USD bulls on the defensive and acts as a headwind for the major.

USDJPY Technical Outlook

Technically, the USDJPY pair appears to have found acceptance below the 4-hour chart’s 100-period Simple Moving Average (SMA). Furthermore, oscillators on hourly charts are in the negative region. But have yet to demonstrate a bearish bias on the daily chart. chart. As a result, any future decline is more likely to find good support at the 148.00 level. And remain confined near the 4-hour chart’s 200-period SMA, which is now positioned near the 147.70-147.65 zone.

The latter should serve as a critical important mark, below which the USDJPY pair is anticipated to accelerate its decline towards the 147.30 region, the pair’s lowest level since September 14 last Tuesday. This is followed by the 147.00 round number, which if broken indicates that spot prices have peaked in the short term, paving the way for a significant depreciating move.

Any additional move up, on the other hand, may now encounter a severe resistance at the 149.00 level ahead of the 149.30-149.35 supply zone. A consistent Strength over 150.00 might allow the USDJPY pair to re-aim for the psychological mark or possible intervention level. Some follow through purchasing will confirm a new breakout and raise spot prices towards the 151.00 round number, or a multi decade high reached in October 2022.