Jpy Fails To Gain Momentum

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Jpy Fails To Gain Momentum

Japanese Yen (Jpy) Fails To Gain Momentum, Remains At Multi-Decade Low

With Thursday's session coming to a close, it looks like JPY has failed once again to gain momentum against the greenback. As a result, the JPY is sitting at a multi-decade low against its American counterpart despite the BoJ shift.

According to experts, the BOJ's outlook is still dovish despite the fact that the country has exited from negative interest rates. Additionally, the risk tone is positive, which undermines the JPY's safe haven status.

For now, the only thing holding the USD/JPY down or under check is the fear of a possible intervention. There's a good chance that the BoJ will move into action to shore up the prices of JPY in case of excessive selling.

On the other hand, the uncertainty regarding the rate cuts from the Fed continues to linger with no end in sight. Earlier, the June/July meeting was expected to deliver a rate cut, but even that is now a low probability after the recent NFP report.

The technical readings of the USD/JPY show that the pair has been trading in a fight range for the last few weeks. But when we look at it from the perspective of the strong rally from March, it appears to be a phase of 'bullish consolidation.'

Moreover, the USD/JPY D1 chart also shows that the oscillators are still in the green and at a safe distance from the overbought zone. So, if we only consider this signal, it means more upside in the USD/JPY is still possible.

On the other hand, a break of the 151.00 support means the pair has moved out of the trading range in a bearish manner. If the pair manages to break beyond that level with enough momentum, it would expose the range between 150.50 - 150.75.

However, the only thing that boost the JPY's value against the USD is a pieces of news that reaffirms the June/July rate cut from the Federal Reserve.

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