USD/JPY bears testing the daily support awaiting BoJ


  • USD/JPY sits firmly towards the prior daily lows.
  • The Bank of Japan announces its policy decision.

USD/JPY was little changed on Thursday, oscillating either side of 110.00 albeit with a bias to the downside. 

The pair was unconvincing on attempts beyond 110 the figure, scoring a high of just 110.09 from a low of 109.71. 

The focus again was on the prospects of QE tapering in the US by the close of the year as the Federal Reserve's Chair, Jerome Powell, repeated his semi-annual testimony, this time to the Senate.

As well as Powell, markets digested comments from some of his colleagues and other FOMC board members.

Powell said that inflation is "well above 2%" and that they are uncomfortable with that and he sticks to the transitory script.

Meanwhile, Chicago Fed president Evans sees QE tapering by year-end as possible if things progress as he expects.

He too is confident that the surge in inflation will be "transitory" and that a more normal inflation environment will emerge in 2022.

However, to the contrary, St. Louis Fed president Bullard feels it is already time to end emergency measures as he is less convinced the inflation will be temporary and is worried that some of the strength may persist into 2022.

Bank of Japan to announce policy decision

Meanwhile, the Bank of Japan announces its policy decision today.

Analysts at Westpac explained that ''no change is expected in key settings such as the 0% 10-year JGB yield target but there should be some tweaks to the growth forecasts (down in 2021, up in 2022) and some details on its green lending program.''

USD/JPY technical analysis

The price is testing daily support structure, and if it were to break below, then there would be a focus on a downside extension of the current daily trend:

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD keeps its range above 1.0850 amid risk-off mood

EUR/USD keeps its range above 1.0850 amid risk-off mood

EUR/USD is oscillating in a tight range above 1.0850 in the European session on Tuesday. The pair stays cautious due to risk-off sentiment and a modest US Dollar uptick, as investors weigh the ECB and Fed rate cut expectations. The focus now remains on speeches from Fed officials. 

EUR/USD News

GBP/USD holds gains above 1.2700, awaits fresh catalysts

GBP/USD holds gains above 1.2700, awaits fresh catalysts

GBP/USD holds small gains above 1.2700 in European trading on Tuesday. Investors await fresh catalysts, with several Federal Reserve speakers and BoE Governor Andrew set to speak. Tuesday's Fedspeak weighed on rate cut expectations and fuelled a fresh US Dollar advance. 

GBP/USD News

Gold pulls back after touching a new all-time high

Gold pulls back after touching a new all-time high

Gold price (XAU/USD) retreats to the $2,410s on Tuesday as commentary from central bank policymakers around the globe reveals a reluctance to commit to lowering interest rates. 

Gold News

Shiba Inu price flashes buy signal, 25% rally likely Premium

Shiba Inu price flashes buy signal, 25% rally likely

Shiba Inu price has flipped bullish to the tune of the crypto market and breached key hurdles, showing signs of a potential rally. Investors looking to accumulate SHIB have a good opportunity to do so before the meme coin shoots up.

Read more

Three fundamentals for the week: UK inflation, Fed minutes and Flash PMIs stand out Premium

Three fundamentals for the week: UK inflation, Fed minutes and Flash PMIs stand out

Sell in May and go away? That market adage seems outdated in the face of new highs for stocks and Gold. Optimism depends on the easing from central banks – and some clues are due this week.

Read more

Forex MAJORS

Cryptocurrencies

Signatures