Önemli
USD/JPY: Dollar Hits 5-Month Low at ¥141.00, 200-Day Moving Average Rebuffs Violent Drop

Japanese yen has added a solid 7% to its valuation against the weakening greenback over the past month.
- The
USDJPY pair fell more than 1% on Thursday to break into a five-month bottom just under ¥141.00. The dollar tumbled for a third day in a row but was salvaged by the 200-day moving average, currently sitting at ¥142.49. A slingshot-like move whipped the dollar back above ¥142.00 early on Friday.
- The exchange rate’s recent performance suggests that the crowded long trade has been exhausted. Since peaking at a 2023 high of ¥151.90, the dollar has erased about 7% of its dominance against the yen. The question now is, can the immediate support hold the bearish pressure?
- Adding to the technical aspect of the short trade, double-bottom support is lurking from the ¥141.51 mark. The recent selloff in the dollar could be attributed to FX markets pricing in a hefty 75bps rate cut planned for 2024, as per the latest Federal Reserve announcement.