February 23, 2024

USD/JPY Pair is Undergoing a Recovery but 134.00 is Proving to be a Resistance Zone

The trading value of the USD/JPY pair was experiencing an uptrend. The pair saw an upward movement, which was quite promising for the USD/JPY supporters.

It happened as the USD was able to gain strength versus major currencies. The report shows that the performance of the G10 was much stronger.

The data showed that the trading price of the pair would land somewhere between the range of 133.90 and 133.45. The predictions came true as the pair ended its week trading at 133.44, which was within the forecast range.

Yen Gained Momentum

Although the USD was performing well throughout the week against the JPY, it was the end of the week when the JPY caught speed.

The JPY started gaining momentum and strength versus the USD. This led to the USD/JPY pair losing momentum and strength in the market.

It was the mixed performance of the stock markets in the United States that led to the weakening of the USD.

Still, the greenback was able to remain positive, and it continued moving upwards but at a slower rate. This time, it was the Treasury yields and other economic data that helped the dollar remain in the positive trend.

On Friday, data was released that showed that the United States Consumer Confidence had recovered in the month of August. This also provided support to the USD/JPY and made things quite promising for the USD.

Main Index of University of Michigan

Then it was the main index of the University of Michigan that rose by 55.1. It reportedly surpassed the 51.1 indexes that were recorded in the month of July.

The August University of Michigan index also managed to surpass the expectations set by the economists. The economists had set the expectations for the month of August at 52.5.

The data also showed that the 1-year expectations for inflation had also recorded a decline.

USD/JPY May End the Week in Negative

Even though the value of the USD grew significantly versus the yen towards the second half of the week, still things are not looking good for the pair.

The report suggests that the trading price of the pair may end the week with negative figures. Despite being in the negative, the pair may end the week too far from the low point.

As for the weekly chart, if the trading price of the pair grows significantly, then its value may rise to 140.00.

However, if the trend turns negative for the pair, USD/JPY’s value is lowered to 131.00. If the situation gets out of control and the JPY manages to gain power against the USD, then the pair’s value may dip to 128.00.

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