Daily Analysis USDJPY - 11 July 2023

The Japanese yen strengthened to levels not seen in over three weeks, surpassing 140 per dollar, primarily due to a weakening US dollar. This appreciation came as Federal Reserve officials indicated that the current cycle of tightening monetary policy is nearing its end, despite their intention to raise interest rates further in order to combat inflation.

Furthermore, there were concerns in the market regarding possible currency intervention. Masato Kanda, a prominent currency diplomat, revealed last week that Japanese officials were maintaining close communication with US Treasury Secretary Janet Yellen and other international counterparts on a daily basis to discuss currencies and the broader financial markets.

Finance Minister Shunichi Suzuki confirmed this statement without disclosing specific details of the discussions. Additionally, he cautioned against excessive selling of the yen.

The correction in USD/JPY persists, with the pair moving closer to the 140.00 level following a decline in the US dollar. Speculations about a potential intervention by the Bank of Japan (BOJ) may further contribute to the selling pressure. If such intervention occurs, the target for the downward movement would be around the 139.00 level.

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