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Key Takeaways
- The USD/JPY pair is trading around 150.60, influenced by a risk-on environment.
- Market activity is subdued due to a Federal Reserve blackout period and ongoing US government shutdown.
- Key technical support for USD/JPY is observed at the 20-day SMA around 150.14.
- Potential resistance is noted at the October 20 peak of 151.20, with further upside targets at 152.00 and 153.27.
- Key support levels on the downside include 149.37 and the 50-day SMA at 148.57.
USD/JPY Market Overview
The USD/JPY currency pair maintained a steady position on Monday, hovering near the 150.60 level. This stability is occurring within a broader risk-on market sentiment. The trading environment is characterized by a lack of commentary from the Federal Reserve during its blackout period, and the absence of significant US economic data releases due to the ongoing government shutdown.
⚡ The quiet market also seems influenced by the lack of market-moving statements from former US President Donald Trump, suggesting the pair might continue trading within familiar ranges in the near term.
USD/JPY Price Forecast: Technical Analysis
From a technical standpoint, the USD/JPY pair has found solid support around the 20-day Simple Moving Average (SMA), which is currently situated near 150.14. This level provided a bounce after the pair experienced a dip to daily lows of 149.37 last Friday. Significantly, the pair managed to close Friday’s trading session above the crucial 150.00 mark.
Bullish Scenarios for USD/JPY
For a continuation of bullish momentum, USD/JPY buyers will need to overcome the resistance encountered at the October 20 peak, which stands at 151.20. Successfully breaching this level would pave the way for further gains, with the next potential target at 152.00. Beyond that, the pair could aim for the October 10 high, provided it surpasses the 153.27 level.
Bearish Scenarios for USD/JPY
Conversely, if sellers gain control and push the exchange rate below the psychologically important 150.00 level, the next significant support level to watch would be 149.37. Further downside pressure could see the pair testing the 50-day SMA, which is positioned at 148.57.
Japanese Yen Performance Against Major Currencies
This week’s performance data indicates that the Japanese Yen (JPY) has shown mixed results against other major currencies. Market analysis often tracks these movements to gauge relative currency strength.
Japanese Yen Price Performance By Week
The table below illustrates the percentage change of the Japanese Yen (JPY) against selected major currencies over the current week. Notably, the Japanese Yen has demonstrated its strongest performance against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.03% | 0.07% | 0.02% | -0.00% | -0.02% | -0.05% | 0.04% | |
| EUR | 0.03% | 0.01% | 0.07% | 0.02% | -0.03% | -0.03% | 0.07% | |
| GBP | -0.07% | -0.01% | 0.02% | 0.00% | -0.03% | -0.03% | 0.07% | |
| JPY | -0.02% | -0.07% | -0.02% | -0.02% | -0.03% | -0.12% | 0.04% | |
| CAD | 0.00% | -0.02% | -0.00% | 0.02% | -0.04% | -0.05% | 0.05% | |
| AUD | 0.02% | 0.03% | 0.03% | 0.03% | 0.04% | -0.00% | 0.09% | |
| NZD | 0.05% | 0.03% | 0.03% | 0.12% | 0.05% | 0.00% | 0.10% | |
| CHF | -0.04% | -0.07% | -0.07% | -0.04% | -0.05% | -0.09% | -0.10% |
The heatmap displays the percentage changes of major currencies against each other. The base currency is selected from the left column, and the quote currency is identified from the top row. For instance, selecting the Japanese Yen from the left column and moving across to the US Dollar shows the percentage change for JPY (base) against USD (quote).
Final Thoughts
The USD/JPY pair is experiencing a period of consolidation, influenced by a quiet macroeconomic calendar and a generally positive risk sentiment. Technical levels present clear support and resistance points that traders are watching closely.
📍 The limited data and central bank commentary contribute to the current trading range, while the ongoing government shutdown in the US adds an underlying layer of uncertainty. Market participants will be looking for clearer directional catalysts in the coming sessions.
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