JPY witnessed a substantial surge against the dollar on Monday

The Japanese yen USDJPY witnessed a substantial surge against the dollar on Monday, escalating by as much as 5 yen, attributed to a substantial intervention by Japanese banks. This marked the first such intervention in 18 months, initiated after the yen plummeted to its lowest in 34 years earlier that day.

This significant shift sets the stage for what may be an active week for currency traders, with the Federal Reserve meeting concluding on Wednesday, U.S. employment data due on Friday, and European inflation figures being released throughout the week, starting with data from Germany and Spain on Monday.

During the trading sessions in Asia and again in Europe, the dollar sharply dropped to 154.4 yen from an intraday peak of 160.245, which was its highest level since 1990. Despite speculation about governmental intervention, Japan's chief currency diplomat, Masato Kanda, refrained from confirming such actions, although traders reported signs of intervention.

Technically:
As previously highlighted, the USDJPY experienced a significant uptick, ascending approximately 4.5% from our last projection.

Consequently, a robust retracement to 152.850 is plausible, after which bullish momentum is likely to persist, propelling the currency pair towards targets of 159.820 and 1661.820. Following these milestones, a bearish trend is anticipated to commence.



Pivot line: 156.77
Resistance line: 159.82, 161.82
Support line: 154.77, 152.85, 150.77

The expected trading range is between support 154.77 and Resistance 159.82

previous idea: