USD/JPY Technical Analysis March 18, 2025
As of 14:15 PM NPT on March 18, 2025, the USD/JPY currency pair is trading at approximately 149.80, showing a minor upward movement following a period of consolidation. This price level indicates the Japanese Yen’s relative weakness against the US Dollar, which has been the dominant trend in recent weeks.
Current Price Levels and Technical Indicators:
The USD/JPY pair is trading around the 149.80 level, maintaining a bullish tone despite some volatility in global markets. The pair is in a strong uptrend, and technical indicators suggest that it may continue to rise in the short term.
RSI (Relative Strength Index): The RSI is currently at 60, indicating a bullish trend but without entering overbought territory. The neutral zone suggests there is still room for the pair to extend its upward momentum.
MACD (Moving Average Convergence Divergence): The MACD is showing a positive histogram, signaling strong bullish momentum. The MACD line remains well above the signal line, confirming the upward bias in the market.
Moving Averages: The 50-day SMA is providing support around the 149.00 level, while the 200-day SMA is located slightly higher at 150.00, offering resistance. The pair is currently above both key moving averages, reinforcing the bullish sentiment.
Support and Resistance Levels:
Support: The immediate support for USD/JPY is at 149.00, which aligns with the 50-day moving average. If the pair drops below this level, it could test further support at 148.60.
Resistance: The primary resistance is found at 150.00, where the 200-day SMA is positioned. A break above this level could signal the potential for further gains towards 151.00 or even higher.
Fundamental Factors:
US Dollar Strength: The US Dollar remains supported by the Federal Reserve’s monetary policy, which continues to be more hawkish relative to other central banks. This disparity in monetary policy has kept the USD on the stronger side against major currencies, including the Japanese Yen.
Japan’s Economic Outlook: The Japanese economy is facing ongoing challenges, including a low inflation rate and slow growth. This has resulted in the Bank of Japan maintaining an ultra-loose monetary policy, which continues to weaken the Yen.
Global Risk Sentiment: Market risk sentiment plays a significant role in USD/JPY’s movements. In times of risk-on market sentiment, the USD tends to benefit, further driving the pair higher. In contrast, risk-off conditions may provide short-term pullbacks in the pair.
Conclusion:
The USD/JPY pair is currently in a strong bullish trend, and the technical indicators support the continuation of this momentum. With the 149.00 level offering immediate support and 150.00 acting as a key resistance, the pair is likely to see further upside if the USD continues to perform strongly. Traders should monitor the global risk sentiment and upcoming US economic data, as these factors could influence the pair’s trajectory in the coming days.
EUR/USD Technical Analysis March 18, 2025