- The Japanese yen surpassed 150 per dollar.
- Japanese Finance Minister Shunichi Suzuki cautioned traders against selling the yen.
- The yen has depreciated by over 20% since the Fed initiated rapid rate hikes.
Thursday’s USD/JPY forecast points to bullish sentiments as the greenback stands tall, lingering near a two-week peak, powered by the surge in Treasury yields. Simultaneously, the Japanese yen surpassed 150 per dollar, leaving traders apprehensive about potential intervention.
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Notably, the Japanese yen hit a new one-year low of 150.48 per dollar. The level is not far from the 32-year low of 151.94 per dollar recorded in October last year, which prompted Japanese authorities to intervene in the currency market.
On Thursday, Japanese Finance Minister Shunichi Suzuki cautioned traders against selling the yen again. Additionally, he emphasized that authorities were closely monitoring market movements. He stated, “I’m closely observing market developments with a sense of urgency.” However, he did not directly comment on the possibility of intervention.
Meanwhile, the interest rate gap between Japan and the United States has widened, leading to continuous yen weakness.
Furthermore, the yen has depreciated by over 20% since the US Federal Reserve initiated rapid rate hikes in March 2022 to combat inflation. Meanwhile, the Bank of Japan remains an outlier among central banks, adhering to its ultra-loose monetary policy.
Carol Kong from the Commonwealth Bank of Australia highlighted that US GDP data is a significant event for the dollar/yen exchange rate. A robust report may exert upward pressure on US yields and lead to the yen testing new lows.
USD/JPY key events today
Traders are expecting major releases from the US, including:
- Core durable goods orders.
- Gross Domestic Product.
- Initial jobless claims.
- Pending home sales.
USD/JPY technical forecast: 150.00 resistance broken
The USD/JPY price has finally punctured the 150.00 key resistance level in a sharp, bullish move. The price was trading between the 149.50 support and the 150.00 resistance levels for a long time. However, it stayed mostly above the 30-SMA, a sign that bulls held control.
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One false breakout below the SMA led to a resurgence in bullish momentum that saw the RSI push to the overbought region. Moreover, the price broke above the 150.00 and 150.51 resistance levels. Bulls look set to take out higher resistance levels as the price pushes farther above the 30-SMA.
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