USD/JPY testing 151.00 as Greenback climbs for a third straight day
08.11.2023, 21:50

USD/JPY testing 151.00 as Greenback climbs for a third straight day

  • The USD/JPY is testing back into recent record highs as the Yen slumps.
  • Investors will be increasingly concerned of potential BoJ intervention the lower JPY goes.
  • Early Thursday sees Japan trade balance figures.

The USD/JPY has reclaimed the 151.00 handle heading into Thursday's market session after the US Dollar (USD) notched in a third straight green candle as the Yen (JPY) continues to slump against the broader market.

The Japanese Yen has continued to decline against its major counterparties with little else to do but go down as a hyper-dovish Bank of Japan (BoJ) hangs the Yen out to dry, though investors will begin to gnaw on the possibility of the BoJ intervening in currency markets to try and defend the beleaguered Yen.

The 150.00-and-above region has historically been a popular exchange level has been a popular intervention zone for the BoJ in the past.

Japan trade balance figures will print early during the Thursday Asia market session, and Japan's Current Account (non-seasonally-adjusted) for September is expected to increase from JPY 2.279 trillion to 3 trillion.

Japan Bank lending for the year into October is also expected to tick down from 2.9% to 2.8% as Japanese banks struggle to find people to lend to despite rock-bottom rates artificially suppressed into the basement and hyper-easy monetary policy that renders funding costs functionally zero.

USD/JPY Technical Outlook

There's little topside technical resistance of note for the USD/JPY except for last week's early jump towards 152.00 that saw the pair quickly tumble back to 149.00, but the next meaningful technical barrier sits at 2022's late swing high that fell just short of claiming 152.00 thirteen months ago.

The 50-day Simple Moving Average (SMA) has struggled to catch up to daily candlesticks, currently rising into 149.00, and long-term technical support is sitting far below current price action with the 200-day SMA rising into 141.00.

USD/JPY Daily Chart

USD/JPY Technical Levels

 

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