USD/JPY treads water in the upper end of the recent range above 151.00 as renewed US Dollar (USD) weakness and rising US yields offset each other. Risk appetite offsets the USD’s decline, while Japanese government yields gain modestly.
Key Factors:
- USD Retreats: The US Dollar’s recent downward trend limits the USD/JPY upside.
- Rising US Yields: Rebound in US yields provides some support.
- BoJ Intervention Concerns: Fears of Bank of Japan (BoJ) intervention cap gains near the 152.00 level.
- BoJ Minutes: Minutes hint at potential tightening, but support for accommodative policy remains.
Technical Outlook:
- Rangebound: USD/JPY remains confined within a recent range.
- Resistance: The 2024 peak at 151.86, the 2023 high at 151.90, and the 2022 top at 151.94 present significant upside hurdles.
- Support: Initial downside targets include March’s low at 146.47, the 200-day SMA near 146.68, and the February low at 145.89.
