The USD/JPY currency pair is currently in a holding pattern after its significant rise last week. Here’s a breakdown of the key levels to watch:
Current Situation:
- The pair is hovering just below its 2023 peak of 152.00.
Potential Upside:
- A break above 152.00 could trigger intervention by Japanese authorities aiming to weaken the USD and strengthen the Yen.
- If intervention doesn’t occur, a surge beyond 152.00 might pave the way for a further climb towards 154.40.
Potential Downside:
- If the market sentiment shifts and sellers take control, support lies at 150.90, followed by 149.75.
- A retest of these support levels might lead to temporary stabilization, but a confirmed breakdown could trigger a steeper decline towards the 50-day moving average at 148.90.
Overall:
The USD/JPY’s near-term direction remains uncertain. The pair could potentially break higher if intervention doesn’t materialize, but the threat of Japanese intervention to weaken the USD hangs over the market. Alternatively, a shift in market sentiment could lead to a pullback towards the identified support levels.