USD/JPY Price Analysis: Hold to gains above 146.70, despite worries of a BoJ intervention
- USD/JPY climbs above 146.00, an area where the BoJ intervened in the market, though the major extended its gains.
- BoJ’s Governor Kuroda remained dovish as the BoJ is trying to get inflation to its 2% target.
- USD/JPY remains upward biased, and worries about BoJ’s intervention keep traders cautious.
The USD/JPY extends its rally above the 146.00 mark, courtesy of BoJ’s Governor Kuroda, giving the green light to continue weakening the Japanese yen. Hence, USD/JPY traders opened fresh longs, lifting the pair toward the 147.00 level. At the time of writing, the USD/JPY is trading at 146.72, up by 0.73%.
USD/JPY Price Forecast
On Wednesday, the USD/JPY cleared the top of the 145.30-90 range, extending its gains above the 146.00 figure. Even though fears of a possible BoJ intervention waned with Governor Kuroda’s earlier comments, it kept the USD/JPY upward pressured. Traders should be aware that a break above 147.00 will expose an essential resistance at 147.67 on its way toward 150.00.
The USD/JPY, one-hour time frame, suggests the pair is upward biased. Nevertheless, it peaked at around 146.96 due to recent US fundamental news, namely the FOMC’s last meeting minutes, spurring a reaction to the downside. Broad US dollar weakness weighed on the USD/JPY, sliding toward the 146.70 region. Once cleared, the next support area would be the confluence of the 20-EMA and the R3 daily pivot at around 149.45/46, from where the pair could resume its uptrend.
If that scenario plays out, the USD/JPY first resistance would be the October 12 high at 146.96. Break above will expose 147.00, followed by August’s 1998 high of 147.67.
USD/JPY Key Technical Levels