Current trend

The USD/JPY pair stabilized near 149.00 after a sharp decline on Tuesday (to the area of 147.40).

This happened after the quotes reached the level of 150.00, which is considered the key mark for the Japanese government to make a decision on currency interventions to strengthen the yen. Japanese Finance Minister Shunichi Suzuki declined to comment on the situation. Experts believe that currency interventions, if they happened, will have only short-term consequences, because the American economy continues to be stable, contributing to the strengthening of USD against its main competitors. The possibility of a new increase in the US Fed's key rate remains, although the probability of such steps is decreasing due to the emerging signs of a weakening of the US labor market. Unlike their US counterparts, Bank of Japan officials are in no hurry to adjust the current ultra-soft monetary policy, despite a significant increase in inflation, so it is expected that the yen will remain under serious pressure until the first half of next year.

Support and resistance

The price remains close to the key resistance level of 150.00 (Murrey level [8/8]), the breakout of which will give the prospect of continued growth to 151.56 (Murrey level [ 1/8]) and 153.12 (Murrey level [ 2/8]). With a breakdown of the level of 146.87 (Murrey level [6/8], the lower line of Bollinger Bands), a decline is possible to 145.31 (Murrey level [5/8]) and 143.75 (Murrey level [4/8], the lower border of the ascending channel), but this scenario is less likely.

Technical indicators confirm the preservation of the uptrend: Bollinger Bands are directed upwards, MACD is stable in the positive zone, and the exit of Stochastic from the overbought zone does not exclude the development of a downward correction, but its potential is seen to be limited.

Resistance levels: 150.00, 151.56, 153.12.

Support levels: 146.87, 145.31, 143.75.

Trading tips

Long positions can be opened above the 150.00 mark or after the price reversal at 146.87 with targets at 151.56, 153.12 and stop losses at 149.00 and 145.60, respectively. Implementation period: 5-7 days.