JPY – Yen Intervention concerns remain, the yen's exchange rate fluctuated

The possibility of further official intervention in the yen could provide some support. Japan's top foreign exchange official, Akito Mimura, stated on Thursday that the authorities are prepared to fully address speculative activity in the foreign exchange market.

The USD/JPY pair broke out of its more than one-month-long sideways trading range last week, initially breaking above the 160 level and even surpassing the March high. However, it failed to extend its upward momentum and instead fell sharply, breaking below the previous range's lower end. The technical downside target is the 250-point range in recent months, which, based on the bottom of 157.50, is approximately the 155 level, a level already approached on Wednesday. The subsequent support levels to watch are the 200-day moving average at 154.20 and the 250-day moving average at 152.60, before targeting the 150 level. The USD/JPY pair is expected to remain volatile in the short term, with a chance to return to its near-month trading range this week. Near-term resistance is expected at the 100-day moving average of 157.50 and 158.60, with the next level at 160. The subsequent resistance levels to watch are 160.80 and 162.

Forecasted Range:
Resistance: 157.50 – 158.60 – 160.00 – 160.80 – 162.00
Support: 155.00 – 154.20 – 152.60 – 150.00

This Week's News Highlights:
8/5 Japan's April Services PMI reported 51.0
 

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