Yen Weakens as USD/JPY Nears 156.00; Fed and Japan GDP Data in Focus
Press Hub UCapital
Share:
The Japanese Yen (JPY) continues to weaken against the US Dollar (USD), trading near the 156.00 level due to uncertainty surrounding the Bank of Japan’s (BoJ) rate policy and strong US Treasury yields driven by “Trump trade” optimism. With Fed Chair Powell’s speech and Japan’s preliminary Q3 GDP on the horizon, USD/JPY traders are preparing for potential moves, with bullish technical signals suggesting a continuation of the upward trend.
Japanese Yen Slips Below 156.00 as USD/JPY Bulls Target Higher Levels
The USD/JPY pair hovers around the 156.00 mark for the fourth consecutive day, pressured by a strong US Dollar and rising US Treasury yields. Concerns over Japan’s domestic economy and the BoJ’s rate-hike hesitation, compounded by global market dynamics, have kept JPY under pressure.
Fundamental Factors Weigh on JPY
BoJ Uncertainty: Japan’s Producer Price Index (PPI) rose at the fastest annual rate in over a year, but the country’s political and economic landscape is complicating BoJ’s potential rate hike decisions. With Prime Minister Shigeru Ishiba’s advisor signaling possible FX intervention, authorities may act if JPY’s decline accelerates. US CPI Impact: Wednesday’s US CPI data showed a slight increase, reinforcing expectations that the Fed may maintain higher rates for longer. This has supported the USD, buoyed by the ongoing “Trump trade” effect, pushing Treasury yields higher. Key Technical Levels for USD/JPY
Upside Targets: A breakout above 156.00 could see USD/JPY testing the next resistance zone at 156.55-156.60, with potential further gains toward 157.00 and 157.30-157.35.
Support Levels: Immediate downside support lies at 155.35-155.30, followed by the psychological 155.00 level. A break below 155.00 could prompt further selling, with support at 154.55-154.50 and ultimately 153.80. Outlook
With Fed Chair Powell’s speech and Japan’s GDP release due soon, the USD/JPY remains positioned for potential volatility. Bullish technical indicators suggest an upward trajectory, while fundamental factors keep the JPY vulnerable, especially if the Fed maintains a hawkish stance or Japan’s economic outlook softens further.
Japanese Yen Slips Below 156.00 as USD/JPY Bulls Target Higher Levels
The USD/JPY pair hovers around the 156.00 mark for the fourth consecutive day, pressured by a strong US Dollar and rising US Treasury yields. Concerns over Japan’s domestic economy and the BoJ’s rate-hike hesitation, compounded by global market dynamics, have kept JPY under pressure.
Fundamental Factors Weigh on JPY
BoJ Uncertainty: Japan’s Producer Price Index (PPI) rose at the fastest annual rate in over a year, but the country’s political and economic landscape is complicating BoJ’s potential rate hike decisions. With Prime Minister Shigeru Ishiba’s advisor signaling possible FX intervention, authorities may act if JPY’s decline accelerates. US CPI Impact: Wednesday’s US CPI data showed a slight increase, reinforcing expectations that the Fed may maintain higher rates for longer. This has supported the USD, buoyed by the ongoing “Trump trade” effect, pushing Treasury yields higher. Key Technical Levels for USD/JPY
Upside Targets: A breakout above 156.00 could see USD/JPY testing the next resistance zone at 156.55-156.60, with potential further gains toward 157.00 and 157.30-157.35.
Support Levels: Immediate downside support lies at 155.35-155.30, followed by the psychological 155.00 level. A break below 155.00 could prompt further selling, with support at 154.55-154.50 and ultimately 153.80. Outlook
With Fed Chair Powell’s speech and Japan’s GDP release due soon, the USD/JPY remains positioned for potential volatility. Bullish technical indicators suggest an upward trajectory, while fundamental factors keep the JPY vulnerable, especially if the Fed maintains a hawkish stance or Japan’s economic outlook softens further.