The Japanese yen has struggled against other currencies in 2024 due to the Bank of Japan’s ultra-loose monetary policy. The weak yen might be getting stronger soon. While other central banks raised rates to fight inflation, Japan kept rates low. This could change by April, leading to a potential yen rally. This is because wage negotiations in Japan might lead to higher wages, giving the Bank of Japan the confidence to raise rates. As markets anticipate this, the yen may start to appreciate.
USD/JPY TECHNICAL CHART
The USD/JPY pair is on the rise, nearing a key resistance level of 150.85. If it breaks above 151.00, traders might push for a climb towards last year’s high near 152.00. However, a drop below 149.70 could see support at 148.90, followed by a potential pullback towards 147.50.
Key points:
- USD/JPY faces resistance at 150.85.
- Breaking above 151.00 could lead to a surge towards 152.00.
- Falling below 149.70 might trigger support at 148.90 and a pullback towards 147.50.
EUR/JPY TECHNICAL CHART
The Euro (EUR) continues to gain ground against the Japanese Yen (JPY), nearing its highest point from 2023 near 164.00. If this level is breached, the Euro could climb further towards 165.00, following a trendline. However, if the trend reverses, the Yen might find support at 161.50, and then 160.70. If the decline continues, the 100-day average at 159.60 and then the 50-day average could act as further hurdles for the Euro.
Key points:
- EUR/JPY is rising, approaching its 2023 peak.
- Further gains could push it towards 165.00.
- Potential downside support at 161.50, 160.70, and then moving averages.
GBP/JPY TECHNICAL CHART
The British pound surged to a new high against the Japanese yen on Thursday, breaching the 190.50 mark. The bullish trend is expected to continue in the near future, potentially pushing the pair towards 192.50 and even 196.00, a level not seen since 2015.
However, if the momentum stalls and the market pulls back, support could be found around 190.00 and then 188.50. If the decline continues, bears might target the 50-day moving average at around 185.50.
Source: https://www.dailyfx.com/