Japanese Yen remains confined in a narrow range near YTD low against USD

Japanese Yen (JPY) struggles for direction on Monday, hovering near a year-to-date low against the US Dollar (USD).

BoJ’s Deputy Governor Uchida’s dovish remarks last week and a positive market tone limit JPY upside.

Market bias leans towards bearish due to Uchida’s comments and positive risk sentiment, reducing JPY’s safe-haven appeal.

BoJ’s potential policy shift after March wage negotiations curtails deeper losses for JPY.

USD remains defensive amid uncertainty about the Federal Reserve’s rate cut plans, capping USD/JPY gains.

Traders await key US inflation figures this week for insights into the Fed’s future policy decisions.

Monday’s trading witnesses the JPY in a subdued state, with thin volumes and an absence of relevant macro data.

Technical analysis suggests a bullish outlook for USD/JPY, with last week’s breakout and positive oscillator signals.

Breakout beyond 149.55-149.60 may push the pair towards 150.00; further gains target 150.35, 150.70, and 151.00.

On the downside, the 148.80-148.70 resistance protects against declines; support at 148.25-148.20 and 148.00.

A break below key support near the 100-day SMA could lead to USD/JPY testing at 147.00 and potentially 146.35.

The percentage change table shows JPY’s strength against the New Zealand Dollar and marginal changes against other majors.

USD EUR GBP CAD AUD JPY NZD CHF
USD 0.01% 0.01% 0.02% -0.01% 0.01% 0.19% 0.02%
EUR -0.01% -0.01% -0.01% -0.02% -0.01% 0.17% 0.01%
GBP -0.01% 0.01% 0.02% -0.01% 0.00% 0.18% 0.01%
CAD -0.01% 0.01% 0.00% -0.01% 0.00% 0.18% 0.01%
AUD 0.00% 0.02% 0.01% 0.01% 0.01% 0.19% 0.02%
JPY -0.01% 0.01% 0.04% -0.01% -0.01% 0.18% -0.01%
NZD -0.19% -0.17% -0.18% -0.19% -0.19% -0.18% -0.17%
CHF -0.02% 0.00% -0.01% -0.01% -0.02% -0.01% 0.17%
The heat map visualizes percentage changes of major currencies against each other, aiding traders in assessing relative performance.

FAQs about Japanese Yen shed light on its role in the global currency market.

The JPY, influenced by BoJ policies, economic performance, and risk sentiment, faces challenges amidst policy divergence.

BoJ’s currency control includes occasional interventions, with the current ultra-loose policy impacting the Yen’s value.

JPY’s safe-haven status makes it attractive during market stress, reflecting stability.

In conclusion, the Japanese Yen grapples with a complex mix of factors, with traders cautiously watching Japanese and US developments for future market direction. The Yen’s role as a safe haven and BoJ’s policy decisions remain pivotal in this dynamic scenario.

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