USD/JPY reached the upper ¥158 range last Friday as the yen strengthened. As of the 24th, the order book showed heavy buy orders around ¥158 and ¥157, while heavy sell orders were also observed in the mid-¥159 range and near ¥160.
USD/JPY moved in the direction of a stronger yen last Friday, with the yen strengthening from the previous close. Some attributed the move to a gradual decline in the U.S. 10-year Treasury yield. Japan's consumer price index (CPI), released domestically, matched market expectations, but USD/JPY showed little reaction.
In the technical analysis released today, observations of the order book showed heavy buy orders building around ¥158 and ¥157, and these levels are being watched as support. Meanwhile, heavy sell orders around the mid-¥159 range and near ¥160 may be acting as resistance.
Looking at correlations between USD/JPY and other major currency pairs, the pair was strongly correlated with GBP/JPY and EUR/JPY over the past 24 hours, while inverse correlations were observed with EUR/USD and GBP/USD. AUD/USD showed a weak inverse correlation.
In the analysis of the relative strength of the 8 major currencies, the Australian dollar was the strongest and the Swiss franc the weakest over the past 24 hours. The yen remained mostly in negative territory, while the dollar's losses widened slightly before returning toward zero overnight.
This week's scheduled releases include revised GDP figures from various countries, consumer-related indicators, housing data, and U.S. indicators such as PCE. USD/JPY may be affected by these releases and by market levels.