Forex trading USD/JPY in sudden move – CAD employment and NFPs in focus [Video]
The USD/JPY exchange rate dived to its lowest level in a month as the Japanese yen made a strong comeback. It dropped to 156.85, down over 4.40% from its year-high as investors predicted that the Bank of Japan (BoJ) will hike interest rates as soon as this month.
USDJPY drops from peak The Yen (USDJPY) took a step back from its monthly rally as prices hit a firm rejection just above the 160.00 zone. A bearish RSI divergence shows a slowdown in buying momentum.
USD/JPY Price Forecast: Bears target 156.50 support zone amid sharp Yen appreciation
TL;DR: USD/JPY has tumbled from 160.38 toward 158, not because of actual intervention but because fear of a repeat is shaping trader psychology near 160 — a fear reinforced by rapidly repricing BoJ tightening expectations, setting up an asymmetric test for Friday's NFP.
USDJPY drops sharply in early US trading on Wednesday (down over 1%) after the pair hit the highest in almost five weeks (160.39) but bulls repeatedly failed to sustain gains above psychological 160 barrier.
A significant shift has begun to emerge around the strength of the Japanese yen in the short term. Over the last two trading sessions, USD/JPY has declined by nearly 1.00%, reflecting a notable recovery in the Japanese currency.
USD/JPY outlook: Hawkish BoJ and speculation of another intervention were likely behind today's sharp fall
USDJPY managed to resume the advance to close from the resistance at 160.85. If prices remain below this resistance, a drop towards 159.10 and 158.00 is likely.
USD/JPY consolidated near 160.25 on Wednesday, hovering close to its highest level since late July. Pressure on the yen has intensified amid a global bond sell-off, with the yield on 10-year Japanese government bonds rising to 3% for the first time since 1996 – increasing the cost of servicing Japan's massive national debt and heightening concerns about fiscal sustainability.
USD/JPY at highest level since July: Carry trade weighs on the Yen
USD/JPY price forecast: US Dollar/Japanese Yen faces rejection at 0.236 arc