The USD/JPY pair experienced a decline for the second consecutive day due to signs of a weakening US labor market. To regain bullish momentum, the pair needs to surpass the 161.00 level, with potential resistance points at 161.70 (July 4 high), 161.95 (YTD high), and 162.00. Key support levels for USD/JPY include 160.35 (Tenkan-Sen), 159.30 (Senkou Span A), and 158.25 (Kijun-Sen), which could serve as possible pullback points.
In terms of technical analysis, the USD/JPY’s four-day rally stalled on Thursday as sellers drove the exchange rate below the 161.00 level, resulting in a doji formation in the weekly chart. This suggests that achieving higher prices may prove challenging in the near term. For a bullish continuation, the pair must clear the 161.00 level, followed by resistance at 161.70, 161.95, and 162.00. Conversely, a drop below 161.00 could lead to a pullback towards support levels at 160.35, 159.30, and 158.25.
The Japanese Yen showed strength against the Canadian Dollar but experienced mixed performance against other major currencies. The percentage changes of various currency pairs involving the Japanese Yen are shown in the table, indicating fluctuations in the exchange rates. The heat map illustrates the percentage changes of major currencies against each other, with the base currency selected from the left column and the quote currency from the top row.
Overall, the USD/JPY pair’s movement is influenced by the latest US economic data, particularly in the labor market, and technical analysis signals. Traders and investors are closely monitoring key levels and potential support and resistance points to make informed trading decisions. While the pair faces challenges in surpassing resistance levels, a break above 161.00 could signal a bullish continuation towards higher price targets. Conversely, a sustained drop below support levels may lead to a pullback in the USD/JPY pair.
