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Japanese officials are stepping up their jawboning game!

Will their actions lead to a short-term reversal for USD/JPY?

I’m looking at the 4-hour chart for clues.

USD/JPY: 4-hour

USD/JPY 4-hour Forex Chart

USD/JPY 4-hour Forex Chart

Hawkish Fed speculations have been pushing the dollar higher against the yen since August.

USD/JPY found a bottom at 130.75 and is now trading closer to the 145.00 psychological zone.

Can USD bulls keep their momentum against JPY though?

A Double Top pattern on the 4-hour chart tells us that there are enough sellers to prevent bulls from hitting new monthly highs.

Stochastic is also forming a bearish divergence with prices, which can fuel any bearish momentum from the 145.00 resistance.

Of course, it doesn’t hurt that Japan’s officials are stepping up their jawboning game.

Japanese Finance Minister Shunichi Suzuki recently shared that they’re “very concerned” with “rapid and one-sided” moves and that currency intervention is on the table.

If USD/JPY maintains its short-term bearishness, then we could see the pair dip to the 142.00 Double Top “neckline.” It could even drop to 140.00 area of interest near the 100 SMA!

Before you sell the dollar like there’s no tomorrow, though, you gotta note that more and more traders believe that the Fed would raise its interest rates by 75 or even 100 basis points this month.

If today’s PPI reports point to the U.S. dealing with high consumer prices for longer, then markets could continue to price in hawkish Fed moves.

USD/JPY could return to its upswing and make new 2022 highs.

Watch the pair closely so you don’t miss any trade opportunities!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.