Japanese Yen gains modestly after BOJ governor Ueda's remarks
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The Japanese Yen (JPY) strengthens modestly against the USD, pushing the USD/JPY pair to the mid-154.00s. This comes after BOJ Governor Kazuo Ueda refrains from making specific monetary policy comments but suggests openness to a possible rate hike in December. Despite this, the JPY's bullish outlook remains limited due to ongoing uncertainty regarding the BOJ's future policies.
Geopolitical risks, particularly the Russia-Ukraine conflict, support the Yen’s safe-haven appeal. However, rising US Treasury yields and a positive risk sentiment dampen further JPY appreciation.
Traders are closely watching:
US macroeconomic data, such as jobless claims and regional manufacturing indices.
Remarks from FOMC policymakers, influencing expectations of Fed rate cuts.
Japan’s national CPI data, guiding future BOJ decisions.
Technical Analysis
The USD/JPY pair shows resilience above the 100-period simple moving average (SMA) on the 4-hour chart, maintaining an upward bias.
Support Levels
154.65-154.60: Immediate support, aligning with the 100-period SMA.
154.00: Key pivot level, supported by the 200-period SMA.
153.25: A break below this level could indicate deeper bearish potential.
Resistance Levels
155.40: Immediate resistance, marking the Asian session peak.
156.00: Psychological barrier, with a possible rally targeting 156.75.
Outlook
While JPY bulls face headwinds from BOJ uncertainty and strong US bond yields, continued trading above 154.00 supports the broader bullish trend. A break above 155.40 could extend gains toward 156.75, while a drop below 154.00 could shift the bias to JPY strength.
Geopolitical risks, particularly the Russia-Ukraine conflict, support the Yen’s safe-haven appeal. However, rising US Treasury yields and a positive risk sentiment dampen further JPY appreciation.
Traders are closely watching:
US macroeconomic data, such as jobless claims and regional manufacturing indices.
Remarks from FOMC policymakers, influencing expectations of Fed rate cuts.
Japan’s national CPI data, guiding future BOJ decisions.
Technical Analysis
The USD/JPY pair shows resilience above the 100-period simple moving average (SMA) on the 4-hour chart, maintaining an upward bias.
Support Levels
154.65-154.60: Immediate support, aligning with the 100-period SMA.
154.00: Key pivot level, supported by the 200-period SMA.
153.25: A break below this level could indicate deeper bearish potential.
Resistance Levels
155.40: Immediate resistance, marking the Asian session peak.
156.00: Psychological barrier, with a possible rally targeting 156.75.
Outlook
While JPY bulls face headwinds from BOJ uncertainty and strong US bond yields, continued trading above 154.00 supports the broader bullish trend. A break above 155.40 could extend gains toward 156.75, while a drop below 154.00 could shift the bias to JPY strength.