Usdjpy Strong On Usd Rebound

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Usdjpy Strong On Usd Rebound

Usd/Jpy Strong Near 147.50 On Usd Rebound

USD/JPY remains in green near the 147.50 handle on Wednesday amid a US Dollar rebound. It seems that the USD recovery continues as the market mood remains upbeat.

Meanwhile, the Q2 GDP data from Japan was strong, but the Japanese Yen remains unimpressed. So, that's also a reason why the USD/JPY is in green despite the positive data from Japan.

Usd/Jpy Chart Shows Rsi Reading Of 30

On the D1 chart of USD/JPY, we can see that the pair continues to trade below the 9 EMA line. This is a sign that the near-term trend is now bearish, while the RSI (14) shows a reading of 30.

So, even the momentum indicators, such as the RSI, hint at a possible correction in the USD/JPY. If that happens, it will be bad news for the USD but a wave of fresh air for the JPY.

If we look at the support levels, the 141.69 handle is important as it is the 7-month low. After that, another support level is seen at around 140.25, followed by the next one at nearly 140.00.

On the way up, the nearest resistance is 9 EMA, located at 147.45. A successful break of this will minimize the bearish momentum in the USD/JPY pair. In that case, the next stop for the USD/JPY bulls will be 153.40.

continuation of the bullish momentum will open the doors to 154.50, which was once a support but is now a resistance.

The bigger picture is that the Japanese yen has trimmed some of its gains. This has happened despite the rumors that BoJ will likely hike the rates again in 2024.

However, the trend has changed in the short term as the USD/JPY is now trading below the 9 EMA on the daily chart. This is also confirmed by the RSI & other technical indicators which means we will likely see a trend shift in the USD/JPY very soon.

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