![](https://www.openenterprisenews.com/wp-content/uploads/2024/04/coins-1726618_960_720-1-750x500.jpg)
Image Source: Pixabay
The Japanese Yen (JPY) seesaws between tepid gains/minor losses against its American counterpart during the Asian session on Wednesday and remains confined in a familiar range held over the past two weeks or so. The possibility of intervention by Japanese authorities to prevent a destabilizing fall in the domestic currency, along with a generally weaker sentiment around the equity markets, lends some support to the safe-haven JPY. That said, the Bank of Japan’s (BoJ) dovish language, signaling that the next rate hike will be some time away, fails to assist the JPY in attracting any meaningful buyers. The US Dollar (USD), on the other hand, remains under some selling pressure for the second successive day and contributes to the USD/JPY pair’s subdued price action. Meanwhile, the markets have been trimming their bets that the Federal Reserve (Fed) will cut interest rates in June. This keeps the US Treasury bond yields elevated and favours the USD bulls. This, along with expectations that the gap between US and Japanese interest rates will stay wide, suggests that the path of least resistance for the currency pair is to the upside and supports prospects for an eventual breakout through a short-term range.
Daily Digest Market Movers: Japanese Yen continues to be undermined by BoJ’s cautious outlook
Technical Analysis: USD/JPY consolidates before the next leg up, move beyond 152.00 mark awaited
From a technical perspective, the range-bound price action witnessed over the past two weeks or so might still be categorized as a bullish consolidation phase against the backdrop of a strong rally from the March swing low. Moreover, oscillators on the daily chart are holding in the positive territory and are still far from being in the overbought zone. This, in turn, suggests that the path of least resistance for the USD/JPY pair is to the upside. That said, bulls might need a sustained breakout through the trading range resistance, around the 152.00 mark, or a multi-decade high before positioning for any further appreciating move.On the flip side, the lower end of the aforementioned trading range, around the 151.10-151.00 area, is likely to protect the immediate downside. Some follow-through selling below the 150.85-150.80 horizontal resistance breakpoint, now turned support, could expose the next relevant support near the 150.25 area. This is closely followed by the 150.00 psychological mark, which if broken decisively might turn the USD/JPY pair vulnerable to accelerate the corrective decline further towards the 149.35-149.30 region before eventually dropping to the 149.00 mark.More By This Author:Swiss Franc Trades Mixed In Key Pairs, Highlighting Passive-Partner Role
USD/CAD Trades With Positive Bias Amid Stronger USD, Bullish Oil Prices To Cap Gains
NZD/USD Struggles Near YTD Low, Not Out Of The Wood Yet Amid Sustained USD Buying