Title: USD/JPY Price Analysis: Grinds higher past 143.20-15 support confluence on BOJ news

September 21, 2022 12:01 AM ET

By: AnalysisWatch

USD/JPY is hovering around 143.75 as bulls take a break after a two-day uptrend in Wednesday's Asian session.

The yen pair's recent hesitation to rise further could be related to the Bank of Japan's (BOJ) readiness to buy Japanese government bonds (JGBs). Reuters reported that "the BOJ is offering to directly buy JGBs at a fixed rate and an unlimited amount (residual maturity of 5YR to 10YR) from September

From a technical perspective, the pair's ability to remain firmer above a confluence of short-term key supports, including the 50-SMA and the 14-day rising trendline around 143.20-15, keeps USD/JPY buyers hopeful. The firmer RSI indicator (14), which is not overbought, also speaks in favor of the bulls.

However, it should be noted that the double top marked near 145.00 casts doubt on the pair's immediate upside before directing buyers to the 61.8% Fibonacci expansion (FE) of the Aug 30-Sept 09 moves, near 145.85.

Alternatively, a break of 143.15 to the downside is an open invitation for USD/JPY bears, as the 100-SMA and swing low from Sep 09, respectively, around 142.10 and 141.50, will challenge further downside quotes.

Following this, the 50% Fibonacci retracement level of Aug 23-Sep 07 near 140.40 will precede the 140.00 level, which limits the USD/JPY decline.