Daily Analysis USDJPY - 7 July 2023

Concerns about potential intervention by Japanese authorities to support the domestic currency, coupled with a risk-off sentiment, bolster the safe-haven Japanese Yen (JPY) and drive aggressive selling in the USD/JPY pair. Additionally, a moderate retreat in the US Dollar (USD) from its weekly peak adds to the bearish sentiment.

That said, a big divergence in the monetary policy stance adopted by the Bank of Japan (BoJ) and other major central banks, including the Federal Reserve (Fed), caps any further gains for the JPY. Apart from this, a further rise in the US Treasury bond yields acts as a tailwind for the Greenback and limits losses for the USD/JPY pair.

Today NFP may help or not the dollar to make a bullish move depends on numbers.

The USD/JPY initiated a correction following a period of price consolidation near the 145.00 resistance level. Currently, the 100-period Moving Average (MA) on the 4-hour chart is acting as a barrier for further downward movement. However, this could be a temporary situation, considering that the solid support level at 142.2 is crucial to watch for any potential recovery in case selling pressure intensifies.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
147.00	146.00	145.00	143.60	142.20	141.20