USDJPY Technical Outlook


Yen regains bid after Aso talks down need for FX intervention. How does the pair now trade? Examine the latest 15 February USDJPY Technical Outlook to get an idea.

15 February, GKFX – The technical recovery in the USD/JPY pair fell apart at 106.89 as the Japanese Yen picked up a bid after Japanese Finance Minister Aso played down the need for FX intervention.

Speculation has been gathering pace that Yen appreciation may not go down well with the authorities in Tokyo. However, Aso’s comments indicate the policymakers are comfortable with the recent appreciation of the Japanese Yen.

So, for the time being, the JPY bulls have little reason to fear. That said, the technical charts show oversold conditions. The daily RSI has hit the oversold territory. Further, risk reversals have diverged from the spot, indicating a drop in the premium claimed by JPY calls (bullish bets) over JPY puts (bearish bets).

Also, the 10-year treasury yield continues to rise and more importantly the US stock market has remained resilient. Hence, caution is the name of the game for the JPY bulls.

15 February USDJPY Technical Outlook

As of writing, the pair was trading at 106.63. The pair retains its bearish bias, as in the 4 hours chart, the pair is further below it’s 100 and 200 SMAs, both accelerating their declines, while technical indicators consolidate near oversold readings, with no clear directional strength. Renewed selling pressure below 106.80 should open doors for a steeper decline in the 106.00 region during the upcoming sessions.

Support levels: 106.80 106.50 106.10

Resistance levels: 107.30 107.70 108.00

Disclaimer

This article 15 February USDJPY Technical Outlook was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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