The Japanese Yen (JPY) experienced a slight upward movement following the Bank of Japan's (BoJ) announcement on Thursday that it left the amount of Japanese government bonds (JGBs) unchanged compared to the previous operation. Over a month ago, the BoJ had reduced its purchases of 5-10 year JGBs in a scheduled operation.
The JPY did not react positively to Japan's Purchasing Managers Index (PMI) data, which indicated that private sector growth reached a nine-month high in May as manufacturing activity returned to expansion.
Meanwhile, the US Dollar (USD) remains firm ahead of the US PMI data release scheduled for Thursday. The Greenback gained ground on Wednesday following the release of minutes from the latest Federal Open Market Committee (FOMC) policy meeting.
Federal Reserve (Fed) policymakers expressed concerns about the slow progress in reducing inflation, which has proven to be more persistent than initially anticipated at the beginning of 2024. As a result, the Fed is cautious about proceeding with interest rate cuts.
Technical Analysis: USD/JPY Remains Above 156.50
The USD/JPY pair is trading around 156.70 on Thursday. A rising wedge pattern on the daily chart suggests a potential bearish turn as the price approaches the wedge’s tip. However, the 14-day Relative Strength Index (RSI) remains slightly above the 50 mark, indicating no immediate momentum shift.
The USD/JPY pair could retest the upper boundary of the rising wedge near the psychological barrier of 157.00. A break above this level could propel the pair toward the recent high of 160.32.
On the downside, the lower boundary of the rising wedge acts as immediate support, followed by the 21-day Exponential Moving Average (EMA) at 155.49. A break below this level could exert downward pressure on the USD/JPY pair, potentially moving it toward the throwback support at 151.86.
USD/JPY: Daily Chart
Japanese Yen price today
The Japanese Yen's (JPY) percentage movement against the main currencies listed today is displayed in the table below. The Japanese Yen outperformed the Euro.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.02% | -0.03% | -0.07% | -0.10% | -0.04% | -0.30% | 0.00% | |
| EUR | -0.02% | -0.05% | -0.07% | -0.11% | -0.05% | -0.31% | -0.03% | |
| GBP | 0.03% | 0.05% | -0.01% | -0.06% | 0.01% | -0.26% | 0.02% | |
| CAD | 0.06% | 0.07% | 0.02% | -0.04% | 0.03% | -0.24% | 0.04% | |
| AUD | 0.11% | 0.11% | 0.06% | 0.02% | 0.05% | -0.21% | 0.07% | |
| JPY | 0.03% | 0.05% | -0.03% | -0.03% | -0.09% | -0.28% | 0.01% | |
| NZD | 0.30% | 0.32% | 0.27% | 0.24% | 0.20% | 0.26% | 0.30% | |
| CHF | 0.03% | 0.03% | -0.02% | -0.04% | -0.07% | -0.01% | -0.28% |
Paraphrasing text from "FX Street" all rights reserved by the original author.
