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FOREX: USDJPY Key Support Continues to Hold As Weekend Close Approaches

FOREX
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  • The USD index has been consolidating near session lows across the US session and while USDJPY (-0.75%) trades with an offered tone overall, key support at 140.25 continues to hold as we approach the weekend close, with the pair rising around 40 pips in recent trade.
  • A breach of 140.25 would see spot at the lowest level since July 2023, and further momentum through the psychological 140.00 mark will be closely monitored next week. For reference, both Japan and China have national holidays on Monday.
  • USDJPY’s weakness today has been yield driven, however the elevated levels for major equity benchmarks appear to have provided just enough support to cross/JPY. Furthermore, there may be limited appetite for such significant technical breaks so close to the weekend close.
  • As noted earlier, the next two supports of note are at 139.87 and 139.00, the 1.236 and 1.382 Fibonacci projections of the Aug 15 - 26 - Sep 3 price swing. Initial resistance remains much higher at 143.04.
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  • The USD index has been consolidating near session lows across the US session and while USDJPY (-0.75%) trades with an offered tone overall, key support at 140.25 continues to hold as we approach the weekend close, with the pair rising around 40 pips in recent trade.
  • A breach of 140.25 would see spot at the lowest level since July 2023, and further momentum through the psychological 140.00 mark will be closely monitored next week. For reference, both Japan and China have national holidays on Monday.
  • USDJPY’s weakness today has been yield driven, however the elevated levels for major equity benchmarks appear to have provided just enough support to cross/JPY. Furthermore, there may be limited appetite for such significant technical breaks so close to the weekend close.
  • As noted earlier, the next two supports of note are at 139.87 and 139.00, the 1.236 and 1.382 Fibonacci projections of the Aug 15 - 26 - Sep 3 price swing. Initial resistance remains much higher at 143.04.