Yen Weakens Amid Uncertain Bank of Japan Policies

Yen Weakens Amid Uncertain Bank of Japan Policies

The Japanese yen has depreciated to below 153 against the U.S. dollar, reaching a one-week low. This decline follows ambiguous statements from Bank of Japan (BOJ) Governor Kazuo Ueda regarding future monetary policy. While Ueda reaffirmed the BOJ’s commitment to a 2% inflation target, he provided limited clarity on potential interest rate adjustments.

Concurrently, U.S. President Donald Trump’s announcement of new tariffs has heightened concerns about rising inflation, reducing the likelihood of the Federal Reserve lowering interest rates and thereby strengthening the dollar. These combined factors have exerted additional downward pressure on the yen.

Technical analysis of the USD/JPY pair indicates key support and resistance levels:

• Resistance Levels:

  • 153.85
  • 154.90
  • 156.00

• Support Levels:

  • 151.90
  • 151.25
  • 149.20

In summary, the lack of clear guidance from the BOJ, coupled with U.S. trade policies, has contributed to the yen’s depreciation. Traders should monitor upcoming economic indicators and central bank communications for further insights into potential currency movements.