The USD/JPY exchange rate declined, mirroring the drop in US Treasury yields. Analysts anticipate a 25 basis point rate increase from the Bank of Japan (BoJ) on Friday. Factors supporting the bearish outlook include economic data indicating easing unemployment, wage demands, and higher inflation figures. The BoJ policy divergence from the Federal Reserve is expected to contribute to a narrowing of yield differentials, potentially pushing USD/JPY lower. However, a dovish hike could limit the downside movement.
USD/JPY fell, tracking the gap lower in UST yields. Focus next on BoJ MPC . We are looking for 25bp hike on Friday.
last seen at 155.46 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note. Daily momentum is bearishEconomic data has been supportive. Jobless rate easing, trade unions calling for another 5-6% wage increase. Fast Retailing announced it will raise starting pay for new employees by 10% and 5% for other employees. Meiji Yasuda announced raising wages by an average of 5% for all 47k staff starting April.
’s move lower may be more constrained. Daily momentum is bearish while RSI fell. Risks skewed to the downside. Next support at 154.30 and 152.80 . Resistance at 157.15 , 158.80 .
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