FX.co ★ Geolocation | USD/JPY

USDJPY Technical Analysis: We'll look at the USD/JPY currency pair's price movement. In the market, the US dollar is doing well, especially when compared to the Japanese yen, which is presently trading at 158.026 yen. The 14-day moving average is being tested by the USD/JPY pair, which could break out higher. The price will exhibit positive momentum if it goes above 158.286. It may then try to surpass the current high of 159.636 and possibly reach 159.686. The principles of monetary policy and market expectations on the Bank of Japan's tightening of monetary policy will determine the yen's future exchange rate. However, Japan's December inflation data did not indicate a notable improvement in interest rates, providing the US dollar with a chance to surpass its pre-March global highs.

The USD/JPY pair is likely to use the 9-period and 22-period exponential moving averages over a 15-day period because of their ease of use and efficiency. A trendline crossover at the price level of 157.702 is necessary for the entry. By controlling risk at a 1:3 ratio every trade, we are adopting a cautious strategy. There is a predefined gap of 20 pips between exit positions. The USD/JPY pair's intraday bias is still neutral, with a potential comeback above 159.656 and a potential decrease if the minor support level drops below 156.856. With a goal of the 61.8% Fibonacci retracement, the current slide from 165.576 is anticipated to be the third phase of a correction, possibly leading down to 153.932. A breakout well above 161.126, however, would call into question this scenario and would result in a retest of the 165.576 mark.