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23.12.202414:48 Forex Analysis & Reviews: USD/JPY: Analysis and Forecast

Relevancia 05:00 UTC--5

Exchange Rates 23.12.2024 analysis

Today, the Japanese yen continues to remain in the shadow of the US dollar during the first half of the European session. Investors remain skeptical about the Bank of Japan's intentions to raise interest rates. The recent widening yield gap between US and Japanese bonds, bolstered by the Federal Reserve's hawkish stance, adds additional pressure on the low-yielding Far Eastern currency.

Furthermore, strong inflation data from Japan, published on Friday, has left some hope for a potential interest rate hike by the Bank of Japan in January or March. Geopolitical risks and speculation that Japanese authorities may intervene in the market to support the national currency could restrain yen bears. Additionally, renewed dollar buying during pullbacks helps USD/JPY advance ahead of the US consumer sentiment index release.

Exchange Rates 23.12.2024 analysis

The Friday low near 155.95 provides immediate support against further declines. A drop below this level could be seen as a buying opportunity near the horizontal zone around 155.50. The next support level is tied to the psychological 155.00 level. Should this level be breached, the short-term bias would shift in favor of the bears, leaving USD/JPY vulnerable to further downside.

On the other hand, the 157.00 round level acts as the nearest resistance, followed by the 157.45 level and the multi-month high reached on Friday. Additional buying momentum beyond the 158.00 level would be viewed as a new bullish trigger, supported by positive oscillators on the daily chart. From there, USD/JPY could rise to an intermediate resistance level at 158.45 before attempting to reclaim the key psychological barrier at 159.00.

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

Irina Yanina,
Analytical expert of InstaSpot
© 2007-2024
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