- The USD/JPY broke above a key resistance level at 148.650 and reaching its highest point since November of the previous year.
- Economists at ANZ Bank anticipate limited near-term recovery for the JPY against the USD, projecting the USD/JPY to trade within the range of 146 to 148.50. They further predict a substantial decline to 136.00 by the end of 2024.
The USD/JPY surpassed a crucial resistance level at 148.650 on Thursday and hit its highest value since November 2023.
The obvious next step is of course to explore the 150.00 threshold. However, any incremental advance beyond this point should be eyed with caution and uncertainty. The Yen faced is facing pressure due to dovish remarks from Bank of Japan (BoJ) Deputy Governor Shinichi Uchida, where he emphasized a gradual approach to policy tightening.
On the other side of the trade, unexpected selling pressure might find defence around 148.300. Further downturns below this technical support may bring attention to 147.800, followed by 146.00. Notably, economists at ANZ Bank anticipate a near-term recovery for the JPY against the USD, projecting the USD/JPY to trade within the range of 146 to 148.50. A substantial decline to 136.00 is then envisaged by the end of 2024.