August 07, 2024 at 05:34AM
The wild swings in Japanese yen pairs are continuing today, this time triggered by remarks from BOJ deputy governor Uchida:
BOJ deputy governor Uchida says the Bank’s interest rate can change if needed
More from BOJ dep Gov Uchida: Appropriate to adjust degree of monetary easing
Before he spoke, USD/JPY was trading around 144.80 and now it is trading nearly 300 pips above that.
That is starting to invite a couple of key near-term levels on the charts again. It comes as dip buyers are starting to feel themselves again.
The 100-hour moving average (red line) was the first hurdle earlier around 146.64 and that has given way. It now frees up room for price action to roam between that and the 200-hour moving average (blue line). The latter is currently seen at 149.85, just under the next key psychological level at 150.00.
There are still arguments about a further unwinding in the carry trade and potentially more pain to come. But as traders, one of the best gauges is also to rely on the technical price action to determine our biases.
And for now, that suggests a shift in the near-term bias in USD/JPY to being more neutral again.
It’s still not indicative of a much stronger rebound but it does point to buyers starting to regain some confidence. That as broader markets are also showing tentative signs of a modest recovery in the last few sessions.
This article was written by Justin Low at www.forexlive.com.
