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USD/JPY Daily Price Analysis – Divergent Central Bank Policies Propel the Yen

  • 2 mins read ●
  • Published:
usd jpy 2

The USD/JPY pair continues its ascent as traders navigate through the monetary policy signals from the Bank of Japan and the Federal Reserve.

Key Points

  • Both the 50-day and 200-day EMAs signal a continued bullish trend, with room for upward movement as suggested by the RSI.
  • BoJ’s cautious approach to policy shifts contrasts with the Fed’s tone.
  • No high-impact economic data is due today, leaving central bank rhetoric in focus.

USD/JPY Daily Price Analysis – 09/02/2024

The USD/JPY pair experienced a significant rally on Thursday, witnessing an approximate 0.80% rise in value during the early hours of the US session. This surge was fueled by the Bank of Japan’s (BoJ) ongoing dovish posture in its rate discussions, which played a role in deflating the yen. Meanwhile, the dollar gained strength as signals emerged that the Federal Reserve might not be as quick to cut rates as previously thought, providing a tailwind for the pair against the yen.

usdjpy daily chart
USD/JPY Daily Chart – 10/02/2024

Continuing the trend, the USD/JPY has maintained its bullish stance, breaking above the crucial resistance mark at 148.90, marking its highest point since the previous November. This upward trajectory is anchored in the anticipation that the BoJ will not engage in aggressive rate hikes upon its exit from negative interest rates, a move that would typically push the yen but now seems less likely. Market participants are closely monitoring the psychological 150.00 level, which, if breached, could pave the way for the pair to test the 152.00 resistance zone.

Key Economic Data and News to Be Released Today

No high-impact economic news directly impacting the USD/JPY pair is slated for release today. The market’s attention will likely remain on the Bank of Japan and the Federal Reserve’s forward guidance.

Visit our Economic Calendar

USD/JPY Technical Analysis – 09/02/2024

From a technical analysis perspective, there’s still more room for the pair to rally up, as the pair trends above the 200 EMA while the RSI also indicates that the pair is far from being overbought.

usdjpy 15m chart
USD/JPY 15Min Chart – 10/02/2024

So, the immediate focus is on the near-term key levels established by the pair. Should a downturn occur, the 148.90 level is expected to act as a pivotal support. However,  if the price breaks the level, we may expect further potential declines to the 147.40 and 146.00 key levels.

USD/JPY Fibonacci Key Price Levels 09/02/2024

Since we have an interesting price action unfolding on the USD/JPY pair, traders should pay close attention to price activity on the following price levels:

SupportResistance
149.09149.52
149.17149.61
149.30149.74

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.

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