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Title: USD/JPY Price Analysis: BOJ’s intervention is key, else stability above 150.00 seems certain

Writer's picture: analysiswatchanalysiswatch

October 21, 2022 12:54 AM ET


By: AnalysisWatch


The USD/JPY pair continued its 12-day winning streak on Friday, surpassing Thursday's high of 150.29. The asset is not reacting to a rebound in risk-on momentum but is effectively taking advantage of negative market sentiment. Ultra-loose monetary policy is responsible for the sheer destruction of the Japanese yen.


The U.S. Dollar Index (DXY) is gathering interest for stabilization above the critical 113.00 hurdle, while U.S. Treasury bond yields are soaring like there is no tomorrow. The 10-year U.S. Treasury bond yield keeps hitting new 14-year highs—at the time of writing, the 10-year yield was at 4.26%.


The upside break of 24-year resistance at 147.67 has given the greenback bulls an adrenaline rush. The 10- and 20-period Exponential Moving Averages (EMAs) at 131.31 and 121.34, respectively, are rising, indicating further upside.


The Relative Strength Index (RSI) (14) has marked a high at 86.00. There is no denying that the Momentum Oscillator is giving overbought signals. However, the lack of divergence signals and momentum losses does not yet suggest a correction.

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