USD/JPY Price Analysis: Consolidated Around 154.60 On Japanese Intervention Fears
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- The USD/JPY currency pair recovered after hitting a four-day low, as Tehran’s non-retaliatory stance calmed market fears.
- Consolidation near the 155.00 mark came under scrutiny, as Japanese officials appeared to be wary of excessive Forex volatility.
- It would be wise to watch for support at the Tenkan-Sen formation at the 153.18 mark, with further support seen at the levels of 152.29 and 151.41.
The USD/JPY currency pair consolidated at around the 154.60 area on Friday after diving to a four-day low of 153.59, courtesy of heightened geopolitical tensions spurred by the escalation of the Israel-Iran conflict.
Nevertheless, Tehran downplayed the attacks, adding they don’t plan to retaliate. That eased pressure off the financial markets, as witnessed by the correction in major currency pairs. The pair recently traded at around 154.62, virtually unchanged.
USD/JPY Price Analysis: Technical Outlook
Friday's daily chart illustrated how the pair consolidated at around peak highs, shy of the 155.00 psychological figure. Japanese authorities jawboning about desirable, orderly moves in the Forex markets kept buyers nervous about pushing the USD/JPY pair past the 155.00 mark. However, once breached and if authorities would not intervene, such a move would expose the August 1990 high of 155.78, followed by the April 1990 high at 160.32.
Otherwise, if sellers were to step in and push the exchange rate below the 154.00 figure, that would pave the way for a pullback. The first support would be the Tenkan-Sen formation at 153.18. Further weakness in the USD/JPY duo would drive prices past the Senkou Span A at the 152.29 level, followed by the Kijun Sen structure at the 151.41 mark. The 50-day moving average (DMA) could be seen at the 150.89 level.
USD/JPY Price Action – Daily Chart
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