USDJPY at Key Resistances – Will Break it or not?

USDJPY at Key Resistances – Will Break it or not?

In the latest news with regard to USDJPY, the Japanese yen weakens against the dollar for a third day in a row. The currency was near its lowest level since November 2023 after Japan’s finance minister said he would not rule out any action against the weakening currency.

The yen fell 0.17% to 151.83 amid continued verbal intervention from Japanese authorities. It weakened over the past week, even as the Bank of Japan (BOJ) ended eight years of negative interest rates.

Japanese Finance Minister Shunichi Suzuki said on Tuesday that “rapid currency movements are not desirable”. This comes after Masato Kanda, Japan’s top currency diplomat, warned on Monday against speculators trying to sell the yen.

Japan is not ruling out any measures to curb the yen’s weakness, Finance Minister Shunichi Suzuki said in the latest warning against speculators the country is entering a sensitive period after last week’s historic reversal from years of easy policy.

Japan’s top currency diplomat politely told Suzuki the other day that a weak yen has both positive and negative effects on the economy, but it is overblown. volatility increases corporate uncertainty.

This in turn could hurt the economy, the minister said, reinforcing Tokyo’s focus on the velocity of market moves, rather than on specific currency levels.

The US Dollar adds to the previous day’s modest gains that followed the release of the upbeat Durable Goods Orders data, which registered a growth of 1.4%, slightly more than expected in February.

Separately, the Conference Board reported that the US Consumer Confidence Index dipped to 104.7 in March, little changed from the previous month’s reading of 104.8 amid fading fears of a recession.

Technical Outlook – USDJPY

USDJPY 151.870, up 0.20%. Today is the time high for November 2023.

On the chart above, a short-term consolidation above key support at 150.90 indicates a continuation of the recent trend. Now 151.9500 acts as a decisive resistance and a fraction above it, the USDJPY pair may soon jump to the round number 152.55-152.85.

On the price, a decisive support can be seen at 151.05 and below that, the USDJPY pair could only retreat to the price. 150.55-150.26. 00.

In addition to the technical aspects, the interventions and fluctuations of the BOJ rate statement can contribute to the movement of the yen.

Commodity Samachar
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