The Japanese Yen (JPY) continued its decline for the fourth consecutive session on Tuesday, influenced by the significant interest rate differential between Japan and the United States (US). This depreciation of the JPY has strengthened the USD/JPY pair. Market sentiment suggests that the Bank of Japan (BoJ) might raise interest rates sooner than anticipated in response to the weak JPY.
Japanese Finance Minister Shunichi Suzuki voiced concerns about the adverse effects of the weak JPY. Suzuki mentioned that market discussions are focusing on the rise in long-term rates and the need for appropriate national debt policies in Japan. There are also hopes for wage increases to outpace inflation. He emphasized that he is closely monitoring foreign exchange movements.
The US Dollar (USD) remains stable, with no major economic data releases from the United States (US). Higher US Treasury yields have bolstered the Greenback. The US Federal Reserve (Fed) remains vigilant regarding inflation and is cautious about the potential for rate cuts in 2024.
Technical Analysis: USD/JPY Rises to Around 156.50
On Tuesday, the Japanese Yen traded at approximately 156.50 against the US Dollar. The daily chart for USD/JPY displayed an ascending triangle pattern, and the 14-day Relative Strength Index (RSI) indicated bullish sentiment, hovering slightly above the 50 mark.
The USD/JPY pair could retest the upper boundary of the ascending triangle around the psychological level of 157.00. A break above this level could drive the pair towards the high of 160.32, a level not seen since April 1990.
On the downside, the immediate support lies at the lower boundary of the ascending triangle around 155.50, followed by the 21-day Exponential Moving Average (EMA) at 155.25. A break below this level could increase downward pressure on the USD/JPY pair, potentially pushing it towards the support level at 153.60.
USD/JPY: Daily Chart
Japanese Yen price today
The Japanese Yen's (JPY) percentage movement against the main currencies listed today is displayed in the table below. In relation to the pound sterling, the Japanese yen was the weakest.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.01% | -0.04% | 0.07% | 0.21% | -0.09% | 0.10% | 0.00% | |
| EUR | 0.01% | -0.03% | 0.08% | 0.20% | -0.09% | 0.10% | 0.00% | |
| GBP | 0.04% | 0.03% | 0.11% | 0.23% | -0.06% | 0.13% | 0.03% | |
| CAD | -0.07% | -0.08% | -0.10% | 0.13% | -0.17% | 0.03% | -0.07% | |
| AUD | -0.21% | -0.22% | -0.24% | -0.14% | -0.30% | -0.11% | -0.21% | |
| JPY | 0.08% | 0.10% | 0.06% | 0.17% | 0.29% | 0.19% | 0.09% | |
| NZD | -0.10% | -0.10% | -0.13% | -0.03% | 0.11% | -0.19% | -0.09% | |
| CHF | -0.02% | 0.00% | -0.05% | 0.05% | 0.18% | -0.12% | 0.08% |
Paraphrasing text from "FX Street" all rights reserved by the original author.
