USDJPY: Holding Below 148.40-90, Further Drop Expected
The USDJPY pair managed to hold below the significant resistance level of 150.15 and dropped towards the target of 147.40. This move came as a result of the weakening US Dollar against the Japanese Yen, which has been a persistent trend in the forex market over the past few weeks.
Technical Analysis
As we observe from the intraday chart, the USDJPY pair has been trading in a downtrend since the beginning of the month. The pair failed to break above the resistance level of 150.15, which was expected to act as a strong barrier for the bulls. The failure to hold above this level resulted in a sharp decline towards the support level of 147.40.
Moreover, the RSI (Relative Strength Index) indicator is showing that the pair is oversold, which suggests that a potential rebound could be on the cards. However, as long as the market holds below the resistance levels of 148.40-90, we can expect more of a drop to test the support levels of 147.30-40.
Impact on Individuals
For individual investors and traders, the weakening US Dollar against the Japanese Yen could have significant implications. Those holding USD-denominated assets or investments could see a decrease in their value when converted to other currencies, such as the Japanese Yen. Conversely, those holding JPY-denominated assets or investments could see an increase in their value when converted to other currencies.
Impact on the World
The weakening US Dollar against the Japanese Yen could have far-reaching implications for the global economy. Japan is the world’s third-largest economy, and a weaker JPY could lead to an increase in Japanese exports, making them more competitive in the global market. This could, in turn, boost economic growth in Japan and potentially lead to higher inflation.
Furthermore, a weaker US Dollar could lead to an increase in demand for commodities priced in US Dollars, such as oil and gold. This could result in higher prices for these commodities, which could have implications for consumers and businesses around the world.
Conclusion
In conclusion, the weakening US Dollar against the Japanese Yen is a trend that has been persisting in the forex market for some time now. The failure of the USDJPY pair to hold above the resistance level of 150.15 has led to a sharp decline towards the support level of 147.40. As long as the market holds below the resistance levels of 148.40-90, we can expect more of a drop to test the support levels of 147.30-40. This trend could have significant implications for individuals and the world economy, with potential increases in inflation, commodity prices, and Japanese exports.
- USDJPY failed to hold above resistance level of 150.15
- Fell towards support level of 147.40
- Market holding below resistance levels of 148.40-90
- Potential for further drop to test support levels of 147.30-40
- Implications for individuals holding USD-denominated assets or investments
- Potential increase in Japanese exports and inflation
- Potential increase in commodity prices
