As the US Dollar sees selling pressure across the board, USD/JPY eased lower on Friday, dipping below 149.00 and testing near the 148.00 handle. The shift in market sentiment comes after a positive upturn in US consumer sentiment figures, with the University of Michigan’s Consumer Sentiment Index beating expectations in August.
Investors reacted by selling the Greenback and moving into riskier assets, despite some mixed data points in the report. Looking ahead, the focus will be on Japanese national inflation data and the start of the Jackson Hole economic symposium next week.
USD/JPY Price Forecast: Technical Analysis
After Friday’s decline, USD/JPY is now below a rising trendline on daily candlesticks. While buyers are still present, the pair is trading near the 200-day Exponential Moving Average (EMA) around 151.67. A break in bullish pressure could lead to further downside momentum, with intraday support levels below 149.00 coming into play.
Japanese Yen FAQs
The Japanese Yen (JPY) is influenced by various factors, including the performance of the Japanese economy, the Bank of Japan’s policies, bond yield differentials, and risk sentiment among traders. The BoJ’s ultra-loose monetary policy has caused the Yen to depreciate against other major currencies, especially the US Dollar.
In times of market stress, the Japanese Yen is often seen as a safe-haven investment, strengthening its value against riskier currencies. The policy divergence between the BoJ and other central banks, particularly the US Federal Reserve, continues to impact the USD/JPY exchange rate.