Technical Analysis: USDJPY

USDJPY opened low after a gap down occurred

On Monday, USDJPY opened low after a gap down occurred. It broke below the 146.0 mark at one point and ended down 0.81%.

The BOJ hinted that a negative interest rate will come to an end

It is appropriate to end a negative interest rate if prices and salaries continue climbing, the BOJ Governor Kazuo Ueda said in an interview last weekend.

Japan’s 10-year treasury yield climbed

On the 11^th September, the BOJ provided loans to banks in order to restrain the treasury yield. Japan’s 10-year treasury yield climbed to 0.7% for the first time since 2014.

USDJPY is likely to retreat in the short term

the chart of the day

On the chart of the day, USDJPY fell from a high level. It is likely to retreat in the short term. In terms of technical indicators, KDJ went downwards after death cross occurred at a high level, showing the bearish market trend prevailed. Investors should focus on whether USDJPY will break through the support at 145.9. It will decline further with potential support at 144.5 if it breaks below 145.9.

4-hour chart

On the 4-hour chart, USDJPY remained high, was prone to fluctuation and fell. The bearish market trend prevailed in the short term. In terms of technical indicators, MACD broke below the zero axis after death cross occurred at a high level, showing USDJPY will fall further. USDJPY will continue dipping if it rebounds but is capped at the resistance of 147.0.

Key resistance: 147.0, 147.8

Key support: 145.9, 144.5

Generally speaking, as the BOJ made hawkish statements, USDJPY is likely to continue falling in the short term.