USD/JPY drops toward key support as BoJ rate hike bets build
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Yen strengthens as USD/JPY nears key double bottom support
The dollar-yen pair (USD/JPY) fell toward ¥149.00, approaching the critical ¥148.70 support level, where bulls could attempt to defend the trend a potential double bottom formation is developing near ¥148.90-¥149.40, with the last similar dip occurring on december 3, 2024.
Bears take control as USD/JPY trades below key moving averages
The pair is now below all three major simple moving averages, reinforcing the bearish momentum.
50-day moving average: ¥154.95;
100-day moving average: ¥153.41;
200-day moving average: ¥152.53;
Bank of Japan signals potential rate hike as inflation climbs
Japan’s consumer prices rose 4% year-over-year in january, increasing speculation that the Bank of Japan (BoJ) may raise interest rates at its march 18-19 meeting BoJ policymakers have expressed growing concern over inflation pressures, adding to the case for a policy shift from ultra-loose monetary settings.
Trading outlook
The ¥148.70 level is a major support zone, and a confirmed break below this level could open the door for further downside toward ¥147.50 if buyers step in, resistance sits near ¥150.50, with a breakout above this level needed to reverse the bearish trend.
The dollar-yen pair (USD/JPY) fell toward ¥149.00, approaching the critical ¥148.70 support level, where bulls could attempt to defend the trend a potential double bottom formation is developing near ¥148.90-¥149.40, with the last similar dip occurring on december 3, 2024.
Bears take control as USD/JPY trades below key moving averages
The pair is now below all three major simple moving averages, reinforcing the bearish momentum.
50-day moving average: ¥154.95;
100-day moving average: ¥153.41;
200-day moving average: ¥152.53;
Bank of Japan signals potential rate hike as inflation climbs
Japan’s consumer prices rose 4% year-over-year in january, increasing speculation that the Bank of Japan (BoJ) may raise interest rates at its march 18-19 meeting BoJ policymakers have expressed growing concern over inflation pressures, adding to the case for a policy shift from ultra-loose monetary settings.
Trading outlook
The ¥148.70 level is a major support zone, and a confirmed break below this level could open the door for further downside toward ¥147.50 if buyers step in, resistance sits near ¥150.50, with a breakout above this level needed to reverse the bearish trend.