USD/JPY PRICE ANALYSIS: PULLBACK FROM YTD HIGHS, INTERVENTION THREATS WEIGHT ON THE USD

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  • USD/JPY trades lower, retreating from its year-to-date (YTD) high amid signals of potential intervention by Japanese authorities.
  • Despite the upward bias, USD/JPY may extend its losses below the 144.00 mark, potentially reaching the 20-day Exponential Moving Average (EMA) at 142.95.
  • Resistance levels lie at the YTD high of 145.07 and the May 10 high of 146.59.

USD/JPY retreats from the year-to-date (YTD) high of 145.07, extending its losses below the 144.10 area, as the US Dollar (USD) weakens despite US Treasury bond yields, particularly the 10-year benchmark note rate edged above the 4.00% threshold. At the time of writing, the USD/JPY exchanges hand at 144.06, down 0.40%.

USD/JPY Price Analysis: Technical outlook

USD/JPY price action suggests the pair is headed for a deeper pullback after Japanese authorities threatened to intervene in the Forex market. The USD/JPY remains upward biased, but the pullback could extend past the 144.00 mark toward the 20-day Exponential Moving Average (EMA) at 142.95.

Of note, the USD/JPY achieved a daily close below the July 3 daily open of 144.08. That could exacerbate a drop below 144.00, exposing the 143.50 psychological level, followed by the 20-day EMA at 142.95. Downside risks will emerge at the June 21 daily high of 142.37, followed by the 142.00 mark.

On the upside, immediate resistance lies at the year-to-date (YTD) high of 145.07, followed by the May 10 high at 146.59


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