Gold prices cool after hitting over 2-week high on Fed independence fears
USD/JPY is trading at 147.74, with an intraday high of 147.89 and a low of 146.99. Price continues to hover around its short-term moving averages, with the 15-day moving average at 147.62 and the 20-day moving average at 147.83 running nearly flat. This reflects the pair’s ongoing range-bound nature after failing to establish a strong directional bias.
Key Technical Observations
- Flat Moving Averages: The 15-day and 20-day SMAs are converging tightly, highlighting a lack of clear trend direction.
- Range-Bound Trading: Price remains locked between 146.50 support and 148.50 resistance, mirroring prior consolidation phases.
- RSI at 51.38: The neutral RSI indicates balanced momentum with neither bulls nor bears in control.
- Reduced Volatility: Candlestick sizes are compressing, a common precursor to breakout moves.
Macro & Market Context
- U.S. Yields: The pair continues to move in sync with U.S. Treasury yields; range-bound yields translate into sideways FX price action.
- BoJ Policy Uncertainty: Traders remain cautious on possible shifts in Bank of Japan policy, limiting upside beyond the 150.00 region.
- Risk Sentiment: Carry trade demand provides the pair support, but risk-off episodes could trigger sharp yen strength.
Key Levels to Watch
- Immediate Resistance: 148.50 (range top)
- Next Resistance: 150.00 (psychological barrier)
- Immediate Support: 146.50 (range floor)
- Breakdown Support: 145.00 (major psychological level)
Bias: Neutral / Range-Bound
The pair remains in consolidation mode, with neither bulls nor bears able to take control. Price stability around 147–148 suggests waiting for a breakout.
Patience may be key in the current range. Traders should watch for a clean breakout from the 146.50–148.50 band. Buying dips near 147.00 or waiting for a confirmed breakout above 148.50 offers clearer setups, while chasing trades inside the range risks getting caught in false moves.
