ধন্যবাদ! আপনার জমা পাওয়া গেছে!
ওহ! ফর্ম জমা দেওয়ার সময় কিছু ভুল হয়েছে।

USD/JPY recovers ground after dropping to 34-year lows

USD/JPY recovers ground after dropping to 34-year lows

The Japanese yen has been on a rollercoaster ride in recent weeks, tumbling to 34-year lows against the US dollar. Will the Bank of Japan step in to prevent further depreciation?

Fueled by speculation of intervention by the Bank of Japan (BOJ), Japan’s top currency diplomat, Masato Kanda, remained tight-lipped on Monday. He refused to confirm or deny whether the BOJ intervened in the foreign exchange market to prop up the yen.

At the time of writing, USD/JPY is seeing some sharp sell-offs that have seen it go from above 160 to around 156 at the time of writing. While some analysts are still attributing this intraday recovery to an undisclosed BOJ move, it remains to be seen whether the current selling pressure will be sustained.

Technical analysis

The 4-hour chart shows a sudden drop that saw USD/JPY tumble from highs of 160 to lows of 154.60 — with the bearish candle settling around the 155.4 support area.

A Deriv MT5 chart showing the USD/JPY performance

This sharp decline triggered a pullback in both the stochastic and RSI indicators, which were previously in extremely overbought territory. This movement suggests a potential shift towards a more neutral reading in the near future..

Market attention remains intensely focused on the BOJ as USD/JPY volatility sparks ongoing speculation. If the BOJ confirms intervention, we could see further downward pressure on the USD/JPY pair, potentially testing the 151 support level. However, silence from the BOJ amid a strengthening US dollar, buoyed by a solid labour market and an expanding manufacturing sector, could lead to another historic surge for USD/JPY, potentially surpassing the 160 mark.

You can get involved and speculate on USD/JPY’s price trajectory with a Deriv MT5 account. It offers a list of technical indicators that can be employed to analyse prices. Log in now to take advantage of the indicators, or sign up for a free demo account. The demo account comes with virtual funds so you can practise analysing trends risk-free.

Disclaimer:

Trading is risky. Past performance is not indicative of future results. It is recommended to do your own research prior to making any trading decisions.

The information contained in this blog article is for educational purposes only and is not intended as financial or investment advice.

This information is considered accurate and correct at the date of publication. Changes in circumstances after the time of publication may impact the accuracy of the information.

No representation or warranty is given as to the accuracy or completeness of this information. We recommend you do your own research before making any trading decisions.