Will the Japanese Yen Continue to Strengthen?
On Thursday, the Japanese Yen soared to a two-month high as investors increased their bets, that the Bank of Japan would raise interest rates again later in the year. Meanwhile, the market remains jittery over concerns surrounding new tariff threats from U.S President Donald Trump.
BOJ Governor Kazuo Ueda mentioned that he had a routine meeting with Japanese Prime Minister Shigeru Ishiba to discuss the economy and financial markets, but the recent rise in long-term interest rates was not mentioned. Nevertheless, investors are already expecting a sooner-than-expected rate hike. This view has been bolstered again by domestic data suggesting that further policy tightening might be feasible.
From a technical analysis perspective, the
USDJPY pair has been in a bullish trend since mid-September, characterized by higher highs and higher lows. However, bearish momentum has regained control since mid-January, pushing the price downward within a descending channel, as indicated by lower highs and lower lows.
Currently, the price has broken below the support zone with significant bearish momentum. However, it is crucial to wait for the daily candle to close. If the daily candlestick manages to close within the support zone, it indicates that the support zone is respected, potentially allowing bullish momentum to regain control and drive the price upward. Conversely, if the daily candlestick fully breaks and closes below this support zone, the price is likely to move lower.
BOJ Governor Kazuo Ueda mentioned that he had a routine meeting with Japanese Prime Minister Shigeru Ishiba to discuss the economy and financial markets, but the recent rise in long-term interest rates was not mentioned. Nevertheless, investors are already expecting a sooner-than-expected rate hike. This view has been bolstered again by domestic data suggesting that further policy tightening might be feasible.
From a technical analysis perspective, the
USDJPY pair has been in a bullish trend since mid-September, characterized by higher highs and higher lows. However, bearish momentum has regained control since mid-January, pushing the price downward within a descending channel, as indicated by lower highs and lower lows.Currently, the price has broken below the support zone with significant bearish momentum. However, it is crucial to wait for the daily candle to close. If the daily candlestick manages to close within the support zone, it indicates that the support zone is respected, potentially allowing bullish momentum to regain control and drive the price upward. Conversely, if the daily candlestick fully breaks and closes below this support zone, the price is likely to move lower.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.