The Japanese yen steadied around 157.54 per dollar on Tuesday after trading within a narrow range of 156.91 to 158.02, pausing its three-session rally. The market consolidated gains as traders evaluated Bank of Japan Deputy Governor Ryozo Himino’s comments about potential rate hike discussions at next week’s BOJ policy meeting.
Himino stated that inflation and price trends had largely followed forecasts but flagged both domestic and global risks as key considerations for monetary policy. Speculation that the BOJ may revise its inflation forecasts at the upcoming meeting has offered modest support to the yen.
Technical Analysis
Picture: USD/JPY stabilises around 157.544, trading within a tight range between 156.905 and 158.018 amid cautious market sentiment, as seen on VT Markets app.
The short-term moving averages (5, 10) crossed above and below each other multiple times, reflecting indecision in market direction. The 30-period moving average served as dynamic resistance, particularly around the 157.8 level, keeping upward movement capped.
The pair traded within a narrow range, hitting a high of 158.018 and a low of 156.905 during the session, reflecting stable but cautious trading. The interplay between potential BOJ policy shifts and strong U.S. dollar fundamentals continues to shape the pair’s trajectory. A breakout from the current range could signal the next major directional move.
Despite the BOJ-driven optimism, the dollar preserved its strength, with resilient U.S. economic data limiting the yen’s momentum. Strong U.S. economic performance has cooled expectations for Federal Reserve rate cuts in 2025, keeping USD/JPY anchored near the 157.6 level.
The yen’s trajectory will hinge on developments at next week’s BOJ policy meeting. Speculation around inflation forecast revisions and possible rate hikes may bolster the yen in the short term. However, further appreciation may be limited as long as the dollar remains supported by strong U.S. data and reduced Fed rate cut expectations. Immediate support for USD/JPY lies at 156.9, with resistance near 158.0, as traders await clearer policy signals from both the BOJ and the Fed.
Official partners:
