On the JPY side, nothing
has changed fundamentally, and the currency has been mainly driven by the risk
sentiment. As a reminder, the BoJ kept interest rates unchanged at 0.5% and
reduced the bond tapering plan for fiscal year 2026 as expected at the last
meeting. The BoJ continues to place a great deal on the US-Japan trade deal and
the evolution of inflation before looking at adjusting rates.
USDJPY
Technical Analysis – Daily Timeframe
On the daily chart, we can
see that USDJPY bounced near the key 142.35 support. We can expect the sellers to lean on the
trendline with a defined risk above it to keep pushing into the 142.35 level
and beyond, while the buyers will look for a break higher to increase the
bullish bets into the 146.28 level next.
USDJPY Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, there’s
not much else we can add here as the sellers will look for a drop from these
levels into the 142.35 level, while the buyers will look for a break above the
trendline. We have a minor support at the 143.30 swing low level though.
That’s where we can expect
the buyers to step in to for a break above the trendline with a better risk to
reward setup, while the sellers will look for a break lower to increase the
bearish bets into new lows
