Last: 
The Yen price against the US Dollar dropped about ten percent to around 151.300 at the beginning of this week. This decline occurred after Masato Kanda, a Japanese official, expressed the possibility of intervention to support the currency. Kanda, Japan's Deputy Finance Minister, stated that the Yen's weakness is not consistent with its fundamentals and may be due to speculation. He expressed readiness to take necessary action.
USD/JPY reached levels above 150.000, which is the point where the Bank of Japan previously intervened in 2022. Data from the futures currency market shows strong speculation following the BoJ's decision to raise interest rates. Technically, the Yen (USD/JPY) shows a bearish Japanese candlestick pattern on Thursday, indicating a potential reversal and short-term pullback.
The fact that this pair reached intervention highs in 2023 and 2022, as well as forming a bearish pattern, suggests the possibility of further declines. The red candlestick on Friday confirmed the Hanging Man pattern from Thursday, increasing the likelihood of further declines.
Also Read:
Although the Japanese candlestick pattern indicates a short-term reversal, the decline may be temporary. The next pullback is expected to reach support at the 50-day Simple Moving Average (SMA) at 149.123. However, a recovery and breakout above 152.000 would indicate buyer dominance and the Bank of Japan's inability to intervene sufficiently to change the trend. Nevertheless, the potential for further gains is limited due to opposing strength, with the next potential target at 153.000.
Warning!
Today's forex news regarding “Rumors of Intervention, Yen Price Against USD Drops 10%?” is based on fundamental and technical perspectives from reliable sources and is not intended as advice or an invitation. Always remember that this content aims to enrich information for readers. Always conduct independent research on other forex information as a reference for your trading.
