The Japanese Yen (JPY) adds to its intraday losses following Bank of Japan (BoJ) Governor Kazuo Ueda's comments at the post-meeting press conference, saying that uncertainties surrounding Japan's economy remain high. Apart from this, weaker-than-expected domestic data released earlier this Wednesday turns out to be another factor undermining the JPY. This, along with a modest US Dollar (USD) bounce from a multi-month low, pushes the USD/JPY pair to the 150.00 psychological mark, or a two-week high during the early European session.
Meanwhile, traders are still pricing in the possibility that the BoJ will hike interest rates in 2025 and the bets were reaffirmed by positive results from Shunto spring wage negotiations. In contrast, the Federal Reserve (Fed) is expected to cut rates several times this year, which has been a key factor behind the recent sharp narrowing of the US-Japan rate differential. This, in turn, should cap the USD and limit losses for the lower-yielding JPY, warranting some caution before positioning for any further move up for the USD/JPY pair ahead of the Fed decision.
From a technical perspective, the recent breakout above the 100-period Simple Moving Average (SMA) on the 4-hour chart was seen as a key trigger for bulls. Moreover, oscillators on the said chart are holding comfortably in positive territory and support prospects for additional gains. That said, the overnight failure ahead of the 150.00 psychological mark warrants some caution. Hence, it will be prudent to wait for a sustained strength beyond the said handle before positioning for a move towards the 150.75-150.80 region, or the 200-period SMA on the 4-hour chart, en route to the 151.00 round figure.
On the flip side, the 149.20 area, followed by the 149.00 mark and the 148.80 region (100-period SMA on the 4-hour chart) should act as immediate support. A convincing break below the latter will suggest that the recent move-up witnessed over the past week or so has run out of steam and drag the USD/JPY pair to the 148.25-148.20 support en route to the 148.00 mark. The downward trajectory could extend further towards the 147.70 area, 147.20 region, and the 147.00 mark before spot prices eventually drop to retest a multi-month low, around the 146.55-146.50 region touched on March 11.
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Australian Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | 0.22% | 0.20% | 0.22% | 0.11% | 0.24% | 0.24% | 0.00% | |
EUR | -0.22% | -0.03% | 0.02% | -0.11% | 0.03% | 0.02% | -0.21% | |
GBP | -0.20% | 0.03% | 0.04% | -0.08% | 0.06% | 0.04% | -0.20% | |
JPY | -0.22% | -0.02% | -0.04% | -0.13% | 0.03% | -0.00% | -0.22% | |
CAD | -0.11% | 0.11% | 0.08% | 0.13% | 0.15% | 0.15% | -0.12% | |
AUD | -0.24% | -0.03% | -0.06% | -0.03% | -0.15% | -0.02% | -0.22% | |
NZD | -0.24% | -0.02% | -0.04% | 0.00% | -0.15% | 0.02% | -0.24% | |
CHF | -0.00% | 0.21% | 0.20% | 0.22% | 0.12% | 0.22% | 0.24% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
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