The Japanese Yen slipped to its lowest level since April during the Asian session on Wednesday, weighed down by fading expectations of a near term rate hike from the Bank of Japan (BoJ). The market reaction reflects growing concerns over the potential economic fallout from recently imposed higher US tariffs, which has dampened hawkish bets on the BoJ and contributed to the Yen's underperformance in July.
On the flip side, the US Dollar remains well-supported, with the USD Index (DXY) surging to its highest level since June 23 following Tuesday's hotter-than-expected US CPI data. The inflation print reinforced the view that the Federal Reserve may delay rate cuts, thereby underpinning demand for the Greenback.
Technical Outlook
From a technical standpoint, USD/JPY’s breakout above the June high at 148.50 and a subsequent move beyond the May swing high around 148.65 has triggered fresh bullish momentum. This bullish bias remains intact as long as the pair holds above the 148.50 support zone.
Immediate Support: 148.50, followed by 148.00
Key Demand Zone: 147.55 horizontal level that could act as a pivot. Break below here might open the door to a deeper pullback toward the 146.30 and 146.25 area.
Immediate Resistance: 149.00, followed by 149.35 and 149.40 zone.
Key Hurdle: 150.00 is a psychologically significant level where bulls may encounter strong resistance. A sustained move and daily close above 149.50 could act as a catalyst for further gains, possibly setting the stage for a test of 150.00 in the near term.
The forecasts provided herein are intended for informational purposes only and should not be construed as guarantees of future performance. This is an example only to enhance a consumer's understanding of the strategy being described above and is not to be taken as Blueberry Markets providing personal advice.
The Blueberry Team
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.