Daily Analysis USDJPY - 19 July 2023

The Yen pair is reflecting concerns about the Bank of Japan's dovish stance while ignoring downbeat Treasury bond yields and discussions about the US Federal Reserve's potential pause in rate hikes. The market is significantly influenced by mixed news about China's economy and overall optimism in equity markets. China's Industry Ministry expressed fears of insufficient demand and declining revenues, impacting commodity prices. US banks anticipate increased profits from higher rates, supporting sentiment. Bank of Japan Governor Kazuo Ueda defended easy-money policies. Concerns about Japan's cabinet reshuffle and pessimism among Tokyo's industrial players weigh on the Japanese Yen, favoring USD/JPY bulls.

USDJPY is undergoing a correction, similar to other major currency pairs. It has tested the 137.7 level twice, forming a double bottom pattern. The next resistance levels to watch for are approximately 140.225 and 141.50.

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