USDJPY Technical Analysis: Key Levels Amid Resistance and Rising Yields

The USDJPY USD/JPY The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting Read this Term experienced a sharp decline yesterday, reaching a new low since February 10th and testing crucial swing low levels from August 2022 at 130.38 and December 2022 at 130.55 (refer to red numbered circles one and two on the daily chart above). Yesterday's low reached 130.53 before rebounding.

Examining the hourly chart below, today's upward movement has pushed the price closer to the 100-hour moving average, currently at 132.399. Over the last four hours, the price has encountered resistance at this moving average level, with sellers remaining active. Despite the resistance, the downward movement has been relatively limited, with support from buyers at the natural level of 132.00. The current price stands at 132.212.

If the 132.00 support level Support Level A trading support or support level represents a given price that acts as a temporary barrier for an asset. In particular, this level ensures an asset’s price will not fall below it or will encounter difficulty in doing so.All assets can utilize supports, be it forex, equities, commodities, etc. A given asset's support level is created by buyers that enter the market whenever the asset falls to a lower price. Basic support levels can be calculated and charted by identifying the lowest lows for a A trading support or support level represents a given price that acts as a temporary barrier for an asset. In particular, this level ensures an asset’s price will not fall below it or will encounter difficulty in doing so.All assets can utilize supports, be it forex, equities, commodities, etc. A given asset's support level is created by buyers that enter the market whenever the asset falls to a lower price. Basic support levels can be calculated and charted by identifying the lowest lows for a Read this Term is broken, traders will be eyeing 131.84 and 131.55 as the subsequent support targets. On the upside, a sustained break above the 100-hour moving average would shift focus towards yesterday's swing high at 132.645, and the swing low and high from Friday at 132.738. A move above these levels would target the 38.2% retracement at 133.348 and the declining 200-hour moving average at 133.56.

The recent surge in yields is contributing to the USDJPY's upside, with the two-year yield up 26.1 basis points and the 10-year yield up 12.1 basis points. Additionally, gains in US stock indices, such as the S&P 500 (up 0.90%) and the NASDAQ (up 0.94%), are driving funds away from the relative safety of the Japanese Yen.