[April 22] Price continues to trade in a narrow range under pressure from both above and below

2024.04.22 [April 22] Price continues to trade in a narrow range under pressure from both above and below

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Recap of previous trading day (April 19)

On Friday of last week, the USDJPY responded to news of the deteriorating situation in the Middle East by falling sharply in the morning session. Having opened at 154.58 yen, the price had fallen to 153.58 before midday but then rallied to close the week's trading at 154.63 yen.

Since the surge that led to it breaking into the 154-yen range on Monday last week, the price has seen multiple sharp sell-offs like that of Friday. However, each time it has been bought back up to recover above the 154-yen level.

Recap of the Tokyo market and outlook going forward

Today the USDJPY fell directly after the open to touch a low of 154.41 yen, after which it rose to hit a high of 154.73 a little before GMT 01:00.

The line on the 1-hour chart of the USDJPY (as of GMT 04:50 on April 22) indicates where the price has broken below 154 yen. The price reverses in the area of the line, so while market participants are cautious of intervention at the upper end of the range, they are also aware of this level at the lower end of the price range.