- USD/JPY down 0.47%, reacting to BoJ’s Takata hinting at possible exit from stimulus, stirring market speculation.
- Technical analysis highlights crucial support at 149.21, with potential rebound or further decline in focus.
- Breach below 149.21 could lead to further losses, targeting 148.31 and possibly extending to the 146.00 region.
The USD/JPY is experiencing a decline, trading below the Tenkan-Sen level of 150.03. This drop comes in the wake of what market participants consider “hawkish” remarks from a Bank of Japan (BoJ) member, Takata. He suggested that the BoJ should contemplate adopting a flexible approach, potentially including a departure from monetary policy stimulus. Investors interpreted this as a signal of policy normalization. As of the current writing, the pair is at 149.98, reflecting a 0.47% decrease.
USD/JPY Price Analysis: Technical outlook
On the daily chart, the pair recorded a low near 149.21, aligning with the Senkou Span A level, before rebounding and staying just below the 150.00 threshold. A breach of this level would expose the Tenkan-Sen and signal a continuation of the existing uptrend, potentially reaching the 151.00 mark.
Alternatively, if the USD/JPY remains below the 150.00 level and concludes a daily session beneath 149.21, anticipate a decline toward the Kijun-Sen at 148.31, followed by the 148.00 level. If this support is breached, the pair may target the upper boundary of the Ichimoku Cloud (Kumo) in the vicinity of 146.00-146.15.
