<p style=““ class=“text-align-justify“>The rejection close to 145.00 this week has been a key point to note for the dollar and the sharp retreat in USD/JPY has also seen other major currencies take advantage of the softer greenback towards the end of the week. The added jawboning by Japanese officials earlier in the day <a target=“_blank“ href=“https://www.forexlive.com/centralbank/usdjpy-kicked-lower-by-suzuki-matsuno-and-then-kuroda-20220909/“ target=“_blank“>here</a> is also helping, with Kuroda outlining that when the pair moves by 200 to 300 pips, then it can be considered a ‚rapid‘ move. That said, I’ll bet he has no complaints about the 200 pips retracement today.</p><p style=““ class=“text-align-justify“>On the balance of things, I’d still argue that Japanese officials are still fine with a falling currency. I mean they know that they are not in a spot to contest otherwise with the BOJ still maintaining an ultra easy monetary policy at the moment. But they are just trying to curb any sudden depreciation and with a rise in USD/JPY from 140.50 to 145.00 within a few days, they saw the need to keep things in check before traders got too carried away.</p><p style=““ class=“text-align-justify“>Looking at the chart above, the drop sees a break back below the 100-hour moving average (red line) at 142.81 and now price action is caught in between that and the 200-hour moving average (blue line) at 141.10. That sees the near-term bias more neutral and outlines the technical levels in play in the short-term.</p><p style=““ class=“text-align-justify“>Further support is seen closer to the 140.00 handle while key resistance remains at the 145.00 handle in the bigger picture.</p><p style=““ class=“text-align-justify“>But for now, the retreat is still keeping more measured within the levels above as it moves in tandem with the dollar decline seen elsewhere as pointed out earlier:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-slides-further-down-1-against-the-euro-and-sterling-20220909/“ target=“_blank“>Dollar slides further, down 1% against the euro and sterling</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/risk-trades-rejoice-on-dollar-correction-20220909/“ target=“_blank“>Risk trades rejoice on dollar correction</a></li></ul>

This article was written by Justin Low at forexlive.com.