The US Treasury yields and USD/JPY were in a slump, according to
USD/JPY Technical Perspective 117.48
The USD/JPY retreated from the double-bottomed ” neckline“, at around 115.80, to weekly lows on Friday, negating the chart pattern in the New York session. The risk-off mood in the market due to rising tensions over the Russia-Ukraine conflict is reflected at USD/JPY of 114.85.
On Friday, global equity indexes suffered losses due to a busy day. The greenback would end the week with gains of 0.88% at 98.583. The US Treasury yields dropped to 1.726% in the meantime, which is a drop of 11 basis points for the USD/JPY currency pair.
The USD/JPY fluctuated between the 115.25-115.55 range during the overnight session for North American traders. But as American traders arrived at their desks, it dropped towards the high 114.60s.
USD/JPY Forecast: Technical outlook
USD/JPY has a tendency to go up, as shown by daily moving averages (DMAs), which are below the spot price. The exception is the 50-DMA. The USD/JPY failed to clear the neckline, which put downward pressure on the pair. However, the trend stagnated around the previous lows that made up the double-bottom. However, the chart pattern of a triple-bottom chart is possible.
USD/JPY’s first resistance level would be at the neckline of 115.78. The breach of this would expose 116.00. Next, the YTD high at 116.35 and the triple bottoms target at 117.48.
