Even with Treasury yields falling yesterday, it had no effect on price action on USD/JPY. The pair remains supported but buyers are not mustering enough courage to go further. For now, the 155.00 mark remains a step too far after all the verbal interventions from the Japanese authorities. Nonetheless, the chart shows that buyers remain calm and in control in the near term.
USD/JPY Hourly Chart
The consolidation vibe just below 155.00 is reminiscent of the time when price action hovered just below the 152.00 mark for about two weeks. What traders need is some form of momentum or trigger point to really strengthen the case for the next step higher in the pair.
That being said, remember that as we take another step forward, we are definitely pushing back the threshold for Tokyo’s intervention.
For now, the short-term chart above shows that buyers are still in control. This means that the price is holding just above 154.00 and the 100 hour moving average (red line) is also defended.
But without real trigger points, it would take some real courage to get anywhere near 155.00 at this point. As such, the pair could find itself stuck in this range for some time over the next week.
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