The U.S. dollar has been giving up ground to the yen even with all the political drama in Japan.
Will a key technical support zone stem USD/JPY’s losses?
Let’s zoom in on the 4-hour chart:
USD/JPY 4-hour Forex Chart by TradingView
Weak August jobs data and growing talk of a Fed rate cut have NOT helped the U.S. dollar, which started the week on shaky ground against the majors.
The yen isn’t faring much better, with PM Ishiba’s weekend resignation stirring up leadership uncertainty and weighing on the currency.
Still, with traders eyeing the U.S. CPI, some profit-taking could show up in the days ahead.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the U.S. dollar and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
USD/JPY turned lower from the 148.50 – 149.00 resistance zone and is now closing in on 146.50, a support area that has been holding since mid-July. On the 4-hour chart, that level also lines up with the S1 Pivot Point around 146.37.
If bullish candles show up around the support zone, the pair could find fresh buying interest and make a run toward 147.75 or even back to the 148.75 resistance area.
On the flip side, if sellers keep the pressure on and USD/JPY breaks below 146.50 and the S1 Pivot Point, the pair could slide toward 145.50.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
