The USDJPY accelerates lower in European trading on Friday, (down 1.4% for the session), as Japanese officials ramped up warnings about possible intervention to stop yen’s strong fall, as the currency hit the lowest in 24 years against the dollar and eyes 1998 peak at 147.68.

The widening gap between the Bank of Japan and US Federal reserve policies  was the main reason of yen’s fall, as the US central bank maintains very hawkish stance and remains on track for further rate hikes, while the BoJ sticks to its ultra-loose monetary policy.

the sellers need validation from a sustained downside break of the support line of a four-day-old bullish pennant, around 143.50 by the press time, to retake control.

Given the quote’s sustained trading below 50-HMA and the recently downbeat RSI, not oversold, the pair is likely to witness short-term downside.

Even so, the 100-HMA and an upward sloping support line from August 26, respectively near 142.65 and 142.20, could challenge the USD/JPY bears before giving them the powers.

Alternatively, buyers may initially struggle to cross the 50-HMA resistance near 144.00 but major attention will be given to the confirmation of the bullish pennant, by crossing the 144.15 hurdle.

Following that, the recent multi-year high near 145.00 could act as an intermediate halt while approaching the tops marked during June and August of the year 1998, close to 146.80 and 147.70 in that order.

Overall, USD/JPY is likely to witness short-term pullback but the bullish trend remains intact.

King Dollar to Experience a Short Term Pullback

farhan fazal

Sep 09 2022

Pending

Published 27d ago

145.129

Current price

139.839

Entry price