USD/JPY Price Analysis: Back above 144.50, as a break of 145.00 could spur another FX intervention

• The USD/JPY bounces off the 143.00 regions and is back above 144.50 after last week’s BoJ FX intervention.
• Following the Japanese intervention in the FX space, the USD/JPY recovered some 3%.
• Near term, the USD/JPY might re-test the 145.00 area, despite increasing concerns of being the BoJ’s line in the sand, opening the door for another FX intervention,

The USD/JPY is recovering some ground after last week’s BoJ FX intervention that bolstered the Japanese yen from trading at around 145.00 price levels towards the 140.34 area. Nevertheless, USD/JPY traders are again lifting the spot price towards the 145.00 mark, as the USD/JPY trades at around 144.66, above its opening price at the time of writing.

USD/JPY Price Analysis: Technical outlook

The USD/JPY remains upward biased after dipping towards the 140.00 region. Worth noting that following the BoJ intervention in the markets, the Relative Strength Index (RSI) edged lower. However, at the time of typing, RSI crossed above its 7-day RSI SMA, suggesting that buyers are gathering momentum as the major hits the 144.00 thresholds.

Short term, the 4-hour scale portrays the USD/JPY strength, with the major clearing the R2 daily pivot at 144.52. Furthermore, after diving towards oversold conditions, oscillators, mainly the Relative Strength Index (RSI), are back in positive territory.

Suppose the USD/JPY clears the 144.99 area, that could pave the way for another FX intervention by Japanese authorities. If it does not, the next USD/JPY resistance would be the September 21 daily high at 145.39, followed by the R3 daily pivot at 145.63.

On the other hand, failure at  145.00 could send the major sliding towards the S1 daily pivot at 143.95. Break below will expose the confluence of the 20 and 50-EMAs around 143.34/36, followed by the daily pivot at 142.85.

USD/JPY Key Technical Levels