The couple extended their decline on Wednesday, falling to 142.36 amid a sustained weakness.
The appreciation of the Japanese Yen is being driven by the smoothness of the basic American dollars. The Greenback faced the sales pressure as the concerns grew on the economic consequences of the new US rates.
In a new escalation of commercial tensions, the president of the United States, Donald Trump, has requested an investigation into imposing tariffs on critical imports of minerals, many of which originate in China. This movement has increased anxiety for investors, with an even more peso of the dollar.
Meanwhile, market attention is resorting to the next commercial conversations between the United States and Japan, where Tokyo is expected to press for the complete elimination of US tariffs.
In the National Front, Japan’s latest economic data revealed a maximum of eight months in optimism of the manufacturing sector for April. However, the perspective remains cautious due to the persistent risks surrounding the commercial policy of the United States.
Technical analysis: USD/JPY
The USD/JPY pair continues to consolidate around 143.20. A break down could indicate a greater decrease around 141.70, marking the third wave of the bassist trend. On the contrary, an upward break can trigger a technical correction around 145.00. This scenario is compatible with the MacD indicator, with its signal line below zero but firmly pointing up.
The torque has formed a broader consolidation range between 142.46 and 144.07, with an emerging triangle pattern. A rupture above this range could start a corrective rally by 145.00. The stochastic oscillator reinforces this view, since its signal line, currently below 20, is sharply around 80.
Conclusion
The rapid appreciation of YEN reflects the weakness of the dollar and cautious optimism in the manufacturing sector of Japan. However, the uncertainties of commercial policy and technical patterns suggest continuous volatility, with key levels in 141.70 (inconvenience) and 145.00 (rise) in focus.
By analytical department of Roboforex
Discharge of responsibility
Any forecast contained in this document is based on the author’s particular opinion. This analysis may not be treated as commercial advice. Roboforex has no responsibility for commercial results based on commercial recommendations and reviews contained in this document.
