BOJ Interest Rate Hike Expectations May Weaken USD/JPY
Today, USD/JPY weakened slightly, trading around 147.15–147.50, with sentiment toward the yen buoyed by expectations that the Bank of Japan remains hawkish. The BoJ is expected to maintain or even tighten monetary policy further if the economy and inflation show momentum, as evidenced by strong indicators such as rising capital goods orders in Japan. This creates a moderate bearish bias against USD/JPY.
Technically, USD/JPY is still consolidating in the 146.20–148.51 range, with a neutral intraday bias. A key support level is located in the 147.10–147.00 zone; if breached, the pair could decline towards 146.20–145.84. Conversely, a break above 148.00–148.51 would open the door to further upside towards 150.90, with intermediate resistance near the 50% retracement zone of the previous downward movement.
Additional insights from technical indicators support a slight bullish bias: according to TipRanks, the overall technical signal for USD/JPY suggests a short-term "Buy" signal, particularly as the short-period moving averages and MACD are in positive territory, although the 200-day moving average (MA) is still signaling a Sell.
Source: Newsmaker.id
