- USD/JPY trades on Friday near 144.50, among lean liquidity, because the US markets remain closed on Independence Day.
- Weekly candles shaping as long -lasting legs, signaling powerful indecision and potential breakthrough.
- The 50-day EMA at the level of 144.90 acts as immediate resistance, and the initial support rests at the lowest level on Thursday nearly 143.50.
The American dollar (USD) is slightly lower on Friday compared to Japanese Jen (JPy), with around 144.50 USD in suppressed holiday conditions, because American markets remain closed on Independence Day.
Despite the end -held dip, USD/JPY remains convenient above the lower limit of the symmetrical triangle on the daily chart, marked with a lower level and higher minimals from April. This suggests somewhat positive prospects before the weekly closing, especially at the weekly candles, creating a long -lasting Doji, indicating the ongoing draft of war and bears.
The symmetrical pattern of the triangle suggests that although neither the bulls nor the bears accepted powerful control, because the price is approaching the top of the triangle. The 50-day interpretation average (EMA), currently floating around 144.90, works as immediate resistance. A clear break over this conflict zone can pave the path of stubborn movement towards the upper border of the triangle, the region of 146.50-147.00.
On the other hand, the initial support is located near Thursday’s lowest level 143.50, which is strictly in line with the growing trend line forming the base of the triangle. Daily closing below this level would tilt brief -term prejudice in favor of sellers, potentially paving the way to a inheritance towards level 142.50 marked on July 1, and then a April swing near 139.89.
From the shoot perspective, the relative strength indicator (RSI) on the daily table floats near 49, which indicates a sustainable market. However, RSI shows a soft slope down, which suggests that the disappearing rush and airy sell pressure when the pairs drift in the previous day.
Meanwhile, the discrepancy of the movable medium convergence (MacD) remains flat and there is no direction. The MacD line is slightly below the signal line, and the histogram is still narrow, reflecting the muffled shoot. This strengthens the view that traders remain careful and wait for a clear catalyst before placing fresh plants.
Frequently inflicted by Japanese Jena
Japan Japan (JPY) is one of the most rotating currencies in the world. Its value depends widely by the results of the Japanese economy, but more specifically by Bank of Japan Policy, the difference between the profitability of Japanese and American bonds or risk moods among investors.
One of the mandates of the Bank of Japan is currency control, so its movements are crucial for Jen. Boj sometimes intervened directly on currency markets, generally to reduce the value of Jen, although it often refrains from doing it because of the political fears of the main trading partners. BOJ Ultra-Loose Monetary policy in the years 2013–2024 meant that Jen was absorbed in relation to the main currency peers due to the growing discrepancy of policy between the Bank of Japan and other main central banks. Recently, the gradual unwinding of this ultra-losing policy gave some support to Jen.
Over the past decade, the attitude of the BOJ regarding the sticking to the ultra-losing monetary policy has led to the discrepancy of politics with other central banks, especially among the US Federal Reserve. This confirmed the expansion of the difference between 10-year bonds in the USA and Japanese, which favored the American dollar in relation to Japanese yen. The decision Bij in 2024, about the gradual abandonment of ultra-losing policy, combined with interest cuts at other main central banks, narrows this difference.
Japanese yen is often seen as a unthreatening investment. This means that in times of market stress, investors more often place their money in Japanese currency due to its alleged reliability and stability. Turbulent times will probably strengthen the value of Jen in relation to other currencies perceived as more risky to invest.
