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Title: USD/JPY Price Analysis: Surrenders Monday’s knee-jerk reaction low at 145.50

October 27, 2022 01:42 AM ET

By: AnalysisWatch

The USD/JPY pair slipped near the low of Monday's sharp reaction around 145.48. Investors saw Monday's jumpy reaction as a stealth intervention by the Bank of Japan (BOJ) to support the weakening yen.

Analysts at National Australia Bank (NAB) in Sydney said Monday, "It is quite obvious that the BOJ is intervening."

As the S& P500 futures have rallied sharply, risk-off market sentiment has rebounded sharply, while the US Dollar Index (DXY) has fallen to 109.65, completing a less confident pullback.

On the hourly scale, the value has abandoned the critical support of 145.48, recorded on Monday. The 50- and 200-period exponential moving averages (EMAs) have crossed at 148.5, indicating the strength of the yen bulls.

Meanwhile, the Relative Strength Index (RSI) (14) has moved into the bearish 20.00–40.00 range, reinforcing the downward filters.

A drop below the Oct. 7 low at 144.60 will pull it further towards the Oct. 4 low at 143.77, followed by the Sept. 13 low at 141.60.

On the other hand, the greenback bulls could regain glory if the value surpasses Monday's high at 149.71, which would send it towards the Oct. 20 high at 150.29. If the latter level is breached, the price will move towards Friday's high of 151.94.

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