USD/JPY: Consolidation holds ahead of BoJ decision – Scotiabank

FXStreet Insights Team FXStreet

Scotiabank strategists Shaun Osborne and Eric Theoret highlight that the Japanese Yen (JPY) is flat against the US Dollar (USD), underperforming G10 peers in subdued trading. USD/JPY price action suggests consolidation in a 157.50–160.50 band, with a flat RSI signaling limited momentum. A weaker trade balance on higher energy imports and Friday’s Consumer Price Index (CPI) release set the tone ahead of next week’s Bank of Japan (BoJ) policy meeting.

Flat momentum inside 157.50–160.50 band

"The yen is entering Wednesday’s NA session unchanged vs. the USD and a relative underperformer among the G10 in overall quiet trade."

"The price action for USD/JPY leans toward consolidation and a flat local range roughly bound between 157.50 and 160.50."

"The RSI is flat, and offers little in terms of momentum."

"Fundamental releases have included a disappointing trade release, with a smaller balance dragged down by higher (energy) imports in March."

"Near-term risk lies with Friday’s March CPI release, the last major data point ahead of next week’s BoJ policy decision."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD remains sidelined around 1.1600

EUR/USD clings to its decent gains on Monday and continues to move in a consolidative mood around the 1.1600 region. Improved risk appetite following the US-Iran agreement to reopen the Strait of Hormuz continues to weigh on the US Dollar, lending support to the risk complex. Looking ahead, investors are likely to remain on the sidelines ahead of Wednesday's FOMC meeting.

GBP/USD retreats from tops, back to 1.3420

GBP/USD keeps its advance past the 1.3400 yardstick at the beginning of the week. In the meantime, Cable continues to draw support from improved market sentiment following reports that the US and Iran have reached a framework agreement aimed at ending the conflict and reopening the Strait of Hormuz.

Gold stays firm, still below $4,400

Gold builds on its recent gains on Monday, climbing well north of the $4,300 mark per troy ounce. The yellow metal benefits from renewed selling pressure on the Greenback as investors reassess the implications of the US-Iran agreement to end hostilities and reopen the Strait of Hormuz. Market participants now turn their attention to Wednesday's FOMC gathering.