Jpy Trades Close To Support Against Usd

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Jpy Trades Close To Support Against Usd

Japanese Yen (Jpy) Trades Close To 157.00 Against Usd

The Japanese yen (JPY) is seen trading against the USD, which has been above 170.00 after the BoJ decided to keep its policy rate unchanged. At the same time, data from the USA shows a rise in inflation.

It appears that even the remarks from the BoJ governor were not enough to support the Japanese yen (JPY). If we look back at the price action from early Friday, it did look at an attempt at intervention, but the JPY only showed a temporary recovery.

Weaker Gdp Supports Usd

So even after the BoJ's intervention, there's still a heavy bearish bias surrounding the Japanese yen (JPY). When we combine this with cooling inflation in Japan and an uncertain rate outlook from the BoJ, it becomes clear why the Japanese yen (JPY) is having a hard time against the USD.

According to various experts, the difference in interest rates between the USA and Japan is now becoming clear. With no chance of the BoJ moving with a rate hike and little chance of a rate cut from the USA, the path of least resistance for USD/JPY is now downwards.

Meanwhile, the greenback continues to garner demand despite the weaker US GDP release. In a sense, the GDP report has paved the way for the Fed to maintain the current rates.

The recent upside in the Japanese yen (JPY) was seen after March's core PCE, the preferred measure of inflation used by the Federal Reserve.

If we look at the Japanese yen (JPY) via technical analysts, the daily chart shows overbought readings. This means the USD/JPY can take a dive down due to short-term consolidation and profit-taking.

In case of sudden appreciation in JPY or intervention, the USD/JPY could slide under 156.00, which will then lead the pair towards 155.40. Next up is the 155.00 handle, followed by the support levels at 154.50, 154.00, and 153.00.

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