USD/JPY sticks to 151.40 amid BoJ’s cautious approach regarding monetary conditions


  • USD/JPY struggles as BoJ’s cautious approach to keep monetary conditions accommodative.
  • Tokyo CPI (YoY) rose 2.6% in March, from the previous reading of a 2.5% rise.
  • The strength of the US Dollar is bolstered by hawkish statements from Fed officials.

USD/JPY remains calm and hovers around 151.40 during the early European hours on Friday. Tokyo Consumer Price Index (YoY) for March climbed 2.6% following a 2.5% rise in February. Meanwhile, the Core Tokyo CPI climbed 2.9% year-over-year, down from a 3.1% rise in February.

Japanese Finance Minister Shunichi Suzuki made remarks on Friday emphasizing the importance of stable currency movements aligned with economic fundamentals. He expressed concern about rapid fluctuations in foreign exchange (FX) markets, attributing speculative activity to these movements. Suzuki stated that authorities are closely monitoring FX developments with a strong sense of urgency and are prepared to take necessary measures to address disorderly FX movements.

Japanese Prime Minister Fumio Kishida remarked on Thursday that it was fitting for the central bank to "maintain accommodative monetary conditions." Kishida also emphasized that the government would persist in collaborating with the Bank of Japan (BoJ) to facilitate wage increases and steer the economy away from deflation. The Japanese Yen (JPY) likely faced challenges due to the Bank of Japan's cautious approach to maintaining accommodative monetary conditions, thereby supporting the USD/JPY pair.

The US Dollar Index (DXY) strengthens, nearing 104.60, as recent data indicates annualized economic expansion in the United States (US), driven by consumer spending. In the fourth quarter of 2023, the US Gross Domestic Product (GDP) Annualized expanded by 3.4%, surpassing market expectations of remaining unchanged at a 3.2% increase. The US Gross Domestic Product Price Index remained steady with a 1.7% increase, in line with expectations for Q4.

The hawkish statements from a Federal Reserve (Fed) official, reinforced the Greenback. Fed Governor Christopher Waller's comments on Wednesday hinted at a potential delay in interest rate cuts, given the strong inflation figures.

(This story was corrected on March 29 at 08:30 GMT to say, in the second bullet, Tokyo CPI, not Japanese)

USD/JPY

Overview
Today last price 151.38
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 151.38
 
Trends
Daily SMA20 149.74
Daily SMA50 149.34
Daily SMA100 147.6
Daily SMA200 146.84
 
Levels
Previous Daily High 151.54
Previous Daily Low 151.15
Previous Weekly High 151.86
Previous Weekly Low 148.91
Previous Monthly High 150.89
Previous Monthly Low 145.9
Daily Fibonacci 38.2% 151.39
Daily Fibonacci 61.8% 151.3
Daily Pivot Point S1 151.17
Daily Pivot Point S2 150.96
Daily Pivot Point S3 150.78
Daily Pivot Point R1 151.57
Daily Pivot Point R2 151.75
Daily Pivot Point R3 151.96

 

 

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