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Will Japanese Yen Currency Rally From 40-Year Support?

Published 10/05/2024, 20:09
USD/JPY
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The USD/JPY has tumbled to new multi-decade lows after its recent free fall.

Currently, the Yen is trading into 40-year support. Could this be the time/price area from which we see a rally?

Let’s take a look at the chart.

JPY Chart

As you can see, the 12-year decline in the Japanese Yen has it testing the bottom of a 40-year sideways channel at (1). As well, we have a bullish divergence with the Relative Strength Index (RSI).

Looks like an important support test is in play for one of the hardest-hit currencies in the world. Time for a rally?

Should the Yen not hold support at (1), it is a very negative message for several assets.

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