Yen slips as Usd/Jpy breaks 155.00 amid BoJ uncertainty and strong Usd
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The USD/JPY pair pushes above the 155.00 mark for the first time since July, driven by a robust US Dollar and uncertainty around the Bank of Japan’s (BoJ) rate policy. Elevated US bond yields, optimism about US President-elect Trump’s economic policies, and a divided BoJ weigh heavily on the Japanese Yen. With technical indicators signaling potential for further gains, USD/JPY could extend toward 156.60 and possibly reach 157.00, barring any market interventions or a major USD reversal following the US inflation report.
Japanese Yen Weakens as USD/JPY Climbs Above 155.00 Amid Economic and Political Uncertainty
USD/JPY continued its upward trajectory on Wednesday, trading above 155.00, a level not seen since July. This shift is influenced by several key factors, including the market’s cautious stance on the Bank of Japan’s (BoJ) rate-hike direction amid political uncertainty, and a strong US Dollar supported by elevated bond yields.
BoJ Uncertainty and Impact of Trump’s Policies on USD/JPY
The Japanese Yen remains vulnerable as investors grow increasingly uncertain about the BoJ’s ability to tighten monetary policy amidst political divisions. Recent Producer Price Index (PPI) data in Japan, which showed a 3.4% year-over-year increase, did little to bolster the Yen due to fears of how rising prices could impact household spending. President-elect Donald Trump’s anticipated expansionary policies add to the pressure, with market participants expecting fiscal expansion and potential tariff policies to support higher US inflation, limiting the scope for significant Fed rate cuts.
Technical Analysis: Key Levels for USD/JPY
From a technical perspective, the 155.00 level now acts as a crucial support for USD/JPY, with a sustained break above likely paving the way toward 156.60 and eventually the 157.00 region. Indicators such as the daily chart oscillators remain in positive territory, and with no immediate overbought signs, the bullish momentum appears likely to continue. Conversely, a corrective move below 154.00 could find support near 153.00, with strong foundational support around the 152.60 mark.
With US CPI data due later today, traders will closely monitor inflation figures, as any significant deviation from forecasts could influence the pair's next direction.
Japanese Yen Weakens as USD/JPY Climbs Above 155.00 Amid Economic and Political Uncertainty
USD/JPY continued its upward trajectory on Wednesday, trading above 155.00, a level not seen since July. This shift is influenced by several key factors, including the market’s cautious stance on the Bank of Japan’s (BoJ) rate-hike direction amid political uncertainty, and a strong US Dollar supported by elevated bond yields.
BoJ Uncertainty and Impact of Trump’s Policies on USD/JPY
The Japanese Yen remains vulnerable as investors grow increasingly uncertain about the BoJ’s ability to tighten monetary policy amidst political divisions. Recent Producer Price Index (PPI) data in Japan, which showed a 3.4% year-over-year increase, did little to bolster the Yen due to fears of how rising prices could impact household spending. President-elect Donald Trump’s anticipated expansionary policies add to the pressure, with market participants expecting fiscal expansion and potential tariff policies to support higher US inflation, limiting the scope for significant Fed rate cuts.
Technical Analysis: Key Levels for USD/JPY
From a technical perspective, the 155.00 level now acts as a crucial support for USD/JPY, with a sustained break above likely paving the way toward 156.60 and eventually the 157.00 region. Indicators such as the daily chart oscillators remain in positive territory, and with no immediate overbought signs, the bullish momentum appears likely to continue. Conversely, a corrective move below 154.00 could find support near 153.00, with strong foundational support around the 152.60 mark.
With US CPI data due later today, traders will closely monitor inflation figures, as any significant deviation from forecasts could influence the pair's next direction.