USD/JPY Analysis: Breaking Japanese Intervention Levels – 27 June 2024
-- The Japanese yen suddenly fell to its weakest level since 1986, increasing speculation and authorities may soon have to support the currency again to stop the worst selling in the developed world.
-- According to reliable trading platforms, the US dollar against the Japanese yen USD/JPY rose to the resistance level of 160.86, its lowest since 1986.
-- With the move, the currency pair surpassed the point where officials intervened in the market in April, bringing losses this year to more than 12%.
-- Against the euro, it fell to its lowest levels ever.
In general, a weaker currency increases the prices of imports, hurting Japanese consumers and causing increasing concern among businesses. Commenting on the performance,
Meanwhile, the wide gap between interest rates in
What’s next for the yen?
“The comments from the finance ministry in recent days suggest growing concern,” said
There’s a lot at stake for
For
So far this week, officials in
Japan’s previous move to support its currency market has raised eyebrows abroad, with the
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The
Also, volatility has remained relatively low in the market, making it difficult for authorities to enter the market so far, many analysts say. Furthermore, the implied volatility of the USD/JPY exchange rate over one month hovered below 9% for most of this month, down sharply from 12.4% in late April.
USD/JPY Technical Analysis and Expectations Today
With the recent move in the USD/JPY exchange rate, all technical indicators have moved towards strong overbought levels. Accordingly, the markets are awaiting the moment of Japanese intervention in the currency markets to stop the bleeding of the exchange rate losses, and that an event will bring strong selling operations for profit-taking in the currency pair. Currently, the closest resistance levels for the currency pair are 160.80, 161.20, and 162.00, respectively.
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