Daily Analysis USDJPY - 18 July 2023

The recent weakness in the risk-barometer pair reflects the cautious optimism prevailing in the markets as concerns over the US-China conflict diminish following Washington's efforts to rebuild relations through frequent visits to Beijing. Moreover, traders of the USD/JPY pair are influenced by mixed concerns regarding the future actions of global central banks, particularly with the impending possibility of a Fed rate hike in July.

It is important to highlight that policymakers at the Bank of Japan (BoJ) continue to advocate for maintaining the accommodative monetary policy, despite market expectations of an eventual shift away from ultra-low interest rates and a moderation of the Yield Curve Control (YCC) policy.

The performance of yields has a significant impact on the USD/JPY pair, and currently, with the ongoing selling of US yields, we are observing increasing pressure on the pair. Breaking the support level at 137.7 is crucial for further downward movement.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
142.00	141.20	140.22	139.00	138.00	136.00