USD/JPY Price Analysis:  Peaks shy of 151.00 as US Treasury yields drop
14.02.2024, 20:38

USD/JPY Price Analysis:  Peaks shy of 151.00 as US Treasury yields drop

  • USD/JPY pulls back to 150.50s after touching highs near 150.80, following US CPI report-driven rally.
  • Technical indicators suggest an upward trend, but the 151.00 level poses a significant hurdle due to Japanese authorities intervention warnings.
  • Potential for further gains if 151.00 is breached; downside risks if it falls below the 150.00 support level.

The USD/JPY retreats after peaking at around the 150.80s area and drops toward the 150.50s area late in the North American session as US Treasury bond yields retrace after hitting year-to-date (YTD) high.

The pair peaked at around the 150.80s area, following last Tuesday’s 140-pip rally after a US inflation report revealed the Consumer Price Index (CPI) stands above the 3% threshold.

From a technical perspective, the USD/JPY is upward biased after extending its gains above the Ichimoku Cloud (Kumo) and the Kijun and Tenkan-Sen levels. However, the 151.00 psychological figures could be challenging to surpass as Japanese authorities threatened to intervene in the Forex markets.

If traders clear the psychological 151.00 figure, that could open the door to challenge last year’s high at 151.91, followed by the 152.00 mark.

In another scenario, if sellers drag the exchange rate below 150.00, downside risks will emerge at the Tenkan-Sen at 148.55. Once cleared, up next would be the Senkou Span A at 148.05, before the 148.00 mark.

USD/JPY Price Analysis: Technical outlook

 

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