As the 155 price level remains crucial for the pair, the BoJ governor continues to affirm that an intervention to save JPY from further decline is impending. The focus now shifts to important economic data from both nations.
Key Points
- The pair continues to make a case for the rally ahead of key economic data from the US and Japan.
- BoJ continues to threaten intervention.
- The key level for the price today is the 155 mark. Should the price close above it, we might see a further rally to the upside.
USD/JPY Daily Price Analysis – 24/04/2024
The pair ended the day where it opened on Tuesday, without loss or gain. Today has been almost the same, with the pair only gaining 0.06% at the time of writing.
The USD is under pressure as Tuesday’s US S&P 500 Global Composite Services, and Manufacturing PMI report came out below expectations. The manufacturing PMI for April was 49.9, a contraction from its March value of 51.9. Services and Composite PMIs, although recording an expansion of 50.9, were contrasted compared to the previous month. Nevertheless, investors are still convinced that rate cuts won’t happen soon, which may support the UDSD strengthening versus the Japanese Yen.
Across the globe, BoJ Governor Suzuki warned that they might directly intervene in the situation to prevent the JPY from falling even further. Last week, Japan, South America, and the United States met, and there was an agreement that the Japanese Central Bank would do whatever was necessary to support its fast-falling currency. Investors don’t seem to pay much heed to this, as recent history proved that the BoJ couldn’t do much to stop the price from climbing past the intervention threshold of 152.
On the technical side, the RSI remains firmly in the oversold zone, and the price is flying far above the 50EMA. Based on these two indicators, the outlook for the USD/JPY is bullish.
USD/JPY Intraday Technical Analysis – 24/04/2024
The price has ranged for over a week, seeming to hesitate every time it gets too close to the 155 mark. The closest it got was 154.973 within the first opening hour of the London Session.
There remains the possibility that the price keeps flirting with the 155 price level, maybe even falling to as low as the 154.45 support zone before making a charge to break the 155 resistance. If the price falls deeper than the 154.45 support zone, though, another support sits at 154, and then the weekly low of 153.59. Anything below these levels, and we can say the price is now in a pullback.
If the 155 lid finally gives way, there are no recent resistance levels to look up to based on the naked price action, as the last time the price traded in this region was in 1990.
Key Economic Data and News to be Released Today
Investors will pay rapt attention to Thursday when the BoJ announces its interest rate decision, monetary policy statement, and YoY outlook report. The United States will also release its GDP data alongside the Initial Jobless Claims. On Friday, the BoJ press conference will be held before the United States PCE and Core PCE data go public.
USD/JPY Key Pivot Point Price Levels 24/04/2024
Based on the 1hr chart, the key Pivot Point price levels for USDJPY are these:
| S2 | S1 | Pivot Point | R1 | R2 |
| 154.431 | 154.633 | 154.755 | 154.957 | 155.079 |
Related Articles:
Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.
