The Japanese Yen (JPY) is on a winning streak against the US Dollar (USD), hitting a four-month high of 148.50. This surge follows the Bank of Japan’s (BoJ) unexpected hawkish policy announcements.
The BoJ raised the short-term rate target by 15 basis points to 0.15%-0.25% and announced a plan to reduce its Japanese government bond purchases to ¥3 trillion per month in 2026.
Market intervention by Japanese officials, who spent ¥5.53 trillion in July to stabilize the Yen, has also contributed to the currency’s strength.
On the other hand, the USD weakened after the Federal Reserve kept rates at 5.25%-5.50% in its July meeting. Traders are now awaiting US economic data releases for further direction.
Key Market Updates and Predictions
- Fed Chair Powell hints at a rate cut in September to monitor labor market conditions.
- BoJ Governor emphasizes the need for sustainable inflation and signals further rate hikes.
- Japanese lender Mitsubishi UFJ Bank raises lending rates in line with BoJ’s actions.
- US private sector employment rises in July, but below market expectations.
- Japan’s Retail Sales beat forecasts, while Unemployment Rate remains low.
- Japan’s Vice Finance Minister warns against Yen depreciation and hints at intervention.
Technical Analysis: USD/JPY Trends
USD/JPY trades around 149.30, breaking below a descending wedge pattern, indicating a bearish trend. The RSI suggests oversold conditions, with potential for a short-term rebound.
The pair may test support at 146.48, while resistance lies at 151.60. A move back to the wedge could signal a reversal towards bullish territory.
USD/JPY: Daily Chart
Japanese Yen PRICE Today
The Japanese Yen (JPY) has shown strength against major currencies today, particularly the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.06% | -0.00% | -0.30% | -0.01% | 0.14% | -0.05% | -0.15% | |
| EUR | 0.06% | 0.06% | -0.28% | 0.04% | 0.20% | -0.00% | -0.10% | |
| GBP | 0.00% | -0.06% | -0.33% | -0.01% | 0.15% | -0.06% | -0.15% | |
| JPY | 0.30% | 0.28% | 0.33% | 0.32% | 0.47% | 0.21% | 0.14% | |
| CAD | 0.01% | -0.04% | 0.01% | -0.32% | 0.16% | -0.05% | -0.14% | |
| AUD | -0.14% | -0.20% | -0.15% | -0.47% | -0.16% | -0.21% | -0.29% | |
| NZD | 0.05% | 0.00% | 0.06% | -0.21% | 0.05% | 0.21% | -0.09% | |
| CHF | 0.15% | 0.10% | 0.15% | -0.14% | 0.14% | 0.29% | 0.09% |
The heat map displays the percentage changes of major currencies against each other. The Japanese Yen has shown strength against most currencies today.
Economic Indicator
ISM Manufacturing PMI
The Institute for Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) is a key indicator of US manufacturing activity. A reading above 50 signals expansion, while below 50 indicates contraction, impacting the value of the US Dollar (USD).
Analysis and Conclusion
The surge of the Japanese Yen against the US Dollar is driven by the BoJ’s unexpected hawkish policies and market interventions. This trend may continue as the Fed hints at a rate cut, while Japan focuses on sustainable inflation.
Investors should monitor key economic indicators and technical analysis to navigate the evolving forex market landscape. Understanding these developments can help individuals make informed decisions about their investments and financial strategies.