Daily Analysis USDJPY - 20 July 2023

The Japanese government has recently announced a downward revision of the growth forecasts for the Asian major's Financial Year (FY) 2023-24. According to policymakers in Tokyo, they now anticipate the FY 2023-24 growth to be 1.3%, as opposed to the previously expected 1.5%.

On a different note, Japan's trade figures for June revealed a positive Merchandise Trade Balance Total, despite a decrease in Imports and encouraging figures for Exports.

In addition, Japan's Prime Minister (PM) Fumio Kishida has defended the Bank of Japan (BoJ) against dovish concerns by expressing readiness to create a society where wage hikes become the norm.

It's noteworthy that the US Treasury bond yields reflect mixed concerns about the Federal Reserve (Fed), even with the widely expected July rate hike.

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