Usdjpy Recovers Post Fx Intervention

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Usdjpy Recovers Post Fx Intervention

Usd/Jpy Recovers 157.00 Post Fx Intervention

After crashing towards the 150s, the USD/JPY has now recovered some ground and is trading near 157.00 on solid greenback demand.

On Monday, the USD/JPY went through heavy losses on a possible Yen rally fueled by FX intervention. However, it was only shortlived as the USD/JPY has once again resumed its bullish trend by securing 200+ pips within a few days.

Meanwhile, the recent retail sales data and job numbers from Japan have once again put bearish pressure on the Yen. Amidst all of this, it makes sense for the USD/JPY to head back towards the 157.00 in a bullish bid.

Usd/Jpy Eyes 159 And 160 Handle

The technical analysis of USD/JPY shows a successful break of 156.00, which was a sign of fresh bullish momentum. This has also paved the way for additional gains as the USD/JPY now eyes 158.00, 159.00, and 160.00 handles once again.

However, the one technical indicator that can put an end to this new bullish wave is the RSI, which is in the extremely overbought area on the D1 chart. This means there's a good chance that we see some short-term consolidation in the USD/JPY before a leg higher.

Meanwhile, the 156.00 level has proven itself to be a decent support, which means it will likely contain any corrections or selling pressure. After that, the 155.00 level also had strong support, followed by the 154.70 handle.

The recent uptick in the USD/JPY is also driven by the fact that BoJ decided not to change the policy settings. At the same time, the data from the USA showed a surprising jump in inflation.

The bottom line is that Japan is struggling with a cooldown in the inflation once again despite the bumper rise in the salaries. All of this means a positive tone in the USD/JPY but the traders are now also aware of any possible interventions from the BoJ.

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