“USD/JPY Decline Stabilizes Above 100-Hour Moving Average | ForexLive”

**USD/JPY Decline Stabilizes Above 100-Hour Moving Average | ForexLive**

The USD/JPY currency pair, a key barometer of global forex market sentiment, has recently experienced a period of volatility, with its decline stabilizing above the 100-hour moving average. This development has caught the attention of traders and analysts alike, as it signals a potential shift in momentum and provides critical insights into the pair’s near-term trajectory. In this article, we will explore the factors influencing the USD/JPY pair, the significance of the 100-hour moving average, and what traders can expect moving forward.

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### **Understanding the USD/JPY Pair**

The USD/JPY currency pair represents the exchange rate between the U.S. dollar (USD) and the Japanese yen (JPY). It is one of the most actively traded pairs in the forex market, reflecting the economic and monetary policies of two major global economies: the United States and Japan. The pair is often influenced by factors such as interest rate differentials, central bank policies, geopolitical developments, and market risk sentiment.

In recent weeks, the USD/JPY pair has been under pressure due to a combination of factors, including fluctuating U.S. Treasury yields, shifts in Federal Reserve policy expectations, and the Bank of Japan’s (BoJ) ongoing commitment to its ultra-loose monetary policy. Despite these headwinds, the pair has managed to find support above its 100-hour moving average, a key technical level that traders use to gauge short-term trends.

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### **The Role of the 100-Hour Moving Average**

The 100-hour moving average (100-HMA) is a widely used technical indicator in forex trading. It represents the average price of a currency pair over the past 100 hours and serves as a dynamic support or resistance level. When the price of a currency pair remains above the 100-HMA, it is often interpreted as a sign of bullish momentum. Conversely, a break below the 100-HMA may indicate bearish sentiment.

In the case of USD/JPY, the pair’s ability to stabilize above the 100-HMA suggests that selling pressure has eased, at least temporarily. This stabilization is significant because it provides traders with a reference point for potential entry and exit levels. Additionally, it indicates that the pair may be consolidating before making its next move, whether upward or downward.

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### **Key Factors Influencing USD/JPY**

Several factors have contributed to the recent stabilization of the USD/JPY pair above the 100-hour moving average:

1. **U.S. Treasury Yields**: The movement of U.S. Treasury yields has a direct impact on the USD/JPY pair. Higher yields tend to support the dollar, while lower yields can weigh on it. Recent fluctuations in yields have created a tug-of-war effect on the pair, but the stabilization above the 100-HMA suggests that the market is finding equilibrium.

2. **Federal Reserve Policy Expectations**: The

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