Key Points:
- USD/JPY hovers around 148.95, reaching an intraday high of 149.06 before stabilizing.
- Japanese Prime Minister Shigeru Ishiba dismisses accusations of yen manipulation.
- Traders focus on Japan’s policy stance amid U.S. tariff concerns and economic outlook.
The Japanese yen maintained its footing around 148.95 per dollar on Monday, recovering from recent declines after touching an intraday low of 148.46. The yen has been in a gradual uptrend since March 14, with traders closely monitoring Japan’s monetary policy stance and trade tensions with the U.S.
Prime MinisterShigeru Ishiba reiterated that Japan is not deliberately weakening the yen to boost exports, rejecting U.S. claims that Japan is manipulating exchange rates.
His comments come as USD/JPY tested the 149.00 level, reflecting a steady demand for the dollar amid speculation on Federal Reserve policy direction.
The yen’s depreciation over the past week has heightened concerns about rising import costs, particularly in food and energy. The Bank of Japan’s (BOJ) stance on rate policy remains a key factor influencing yen movements, with markets awaiting further guidance on potential adjustments.
Technical Analysis
The USD/JPY pair is trading near 148.95, showing a 0.15% gain with a daily high of 149.06. The price has been steadily climbing after bouncing from a recent low of 147.41, supported by bullish momentum and a rising 50-day moving average. The MACD indicator signals strengthening buying interest, though some consolidation is evident.
Picture: USD/JPY holds gains near 149.00, eyes further upside, as seen on the VT Markets app
A break above 149.10 could open the door for further upside towards 149.50–150.00. On the downside, key support levels to watch are 148.50 and 148.00. Traders should monitor U.S. Treasury yields and BOJ policy signals, as they remain key drivers for USD/JPY movements.
Traders remain cautious ahead of upcoming U.S. economic data and central bank policy meetings, which could provide further direction for USD/JPY.
