The US Dollar (USD) is trading higher against the Japanese Yen (JPY) at the start of the week, climbing past 152.00 but encountering stiff resistance near 152.35—a former support level now acting as a barrier.
After rebounding from 151.10, the pair has shown signs of bullish momentum. However, failure to break and hold above 152.35 may lead to a deeper pullback in the short term.
Japanese Yen Under Pressure Amid Political Uncertainty
The Yen remains under pressure following political developments in Japan. Over the weekend, the Komeito party announced its decision to exit the ruling coalition with the Liberal Democratic Party (LDP) due to disagreements with new leader Sanae Takaichi. This deepens the ongoing political crisis and adds to the Yen’s weakness across the board.
Technical Analysis: 152.35 Resistance Key to Near-Term Direction
On the 4-hour chart, USD/JPY shows waning bullish momentum. While the RSI remains above 50—indicating some strength—a sustained failure to push past 152.35 could trigger a reversal toward lower support levels.
- Initial support lies at 151.70, with a further drop exposing Friday’s low at 151.10.
- Below that, key support comes near the October 7 low around 150.30, which aligns with the projected completion of an A-B=C-D corrective pattern.
To the upside, a confirmed breakout above 152.35 would invalidate the bearish setup and open the path toward:
- October 9 highs above 153.20
- Followed by the 127.2% Fibonacci retracement of Friday’s decline, near 153.85
Currency Heat Map: JPY Weakens Across the Board
Here’s how the Japanese Yen performed today against major currencies:
| Base / Quote | USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|---|---|---|---|---|---|---|---|
| JPY | -0.14% | +0.04% | -0.14% | -0.16% | -0.38% | +0.07% | +0.07% |
- The Yen was weakest against the Australian Dollar, falling 0.38%.
- It also posted losses against the USD, GBP, and CAD, highlighting its broad-based weakness.
- The only marginal gains were seen versus the NZD and CHF.
Outlook Summary:
- Short-term bias remains bullish above 151.10, but failure at 152.35 could lead to a pullback.
- A clear breakout above 152.35 opens the door to 153.20 and beyond.
- Yen weakness may persist as political uncertainty in Japan escalates.
