USD/JPY Analysis: Psychological Level Changes the Price Sharply

<img src="https://fxopen.com/blog/en/content/images/2023/10/jpy__.jpg" alt="USD/JPY Analysis: Psychological Level Changes the Price Sharply" /><p>On Tuesday, the US dollar rose above the psychological level of 150 for the first time since October 2022 before falling sharply to a low of 147.30 as the yen rose.</p><p>The media are discussing whether this movement confirms the fact of intervention on the part of the Japanese authorities.</p><p>On the one hand, there are opinions that the yen&apos;s movement on Tuesday was much smaller (about 1.7%) than when the authorities intervened last year (the change was about 4%) to support the yen.</p><p>On the other hand, there are no clear explanations about the reasons for the sharp movement — except as a manifestation of the authorities’ interest in preventing excessive weakening of the national currency. Perhaps only about the influence of psychology when reaching and short-term exceeding the round figure — an effect that, by the way, is characteristic of the cryptocurrency market.</p><figure><img src="https://fxopen.com/blog/ru/content/images/2023/10/61–2-.png" alt="USD/JPY Analysis: Psychological Level Changes the Price Sharply" loading="lazy" width="2840" height="1560" /></figure><p>What are the possible scenarios for further development in the USD/JPY market?</p><p>Bullish arguments:<br>→ The price is within the uptrend (shown by the blue channel). Tuesday&apos;s move expanded it on a parallel channel basis. A sharp rebound from the lower boundary indicates the strength of demand.<br>→ After a sharp impulse, the price found support at the former resistance level of 148.4.</p><p>Bearish arguments:<br>→ When approaching the level of 150 yen per US dollar, psychological factors may again come into play. The memory of Tuesday&apos;s sharp momentum, reinforced by the broader momentum of last year, will keep market participants from expecting prices to rise above the round level.<br>→ It is acceptable to assume that the median line of the channel will now pose an obstacle if the price rises to it.</p>