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HomeFinance NewsBoJ Governor Ueda's remarks trigger yen to remain offered above YTD low.

BoJ Governor Ueda’s remarks trigger yen to remain offered above YTD low.

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The Japanese Yen experienced a notable decline across the board following the Bank of Japan’s decision to raise interest rates for the first time since 2007 and eliminate the Yield Curve Control (YCC) policy. This move prompted a sell-off of the JPY as investors reacted to the unexpected policy changes. Despite the lack of specific guidance on future policy steps, the BoJ emphasized that monetary policy would remain accommodative for the time being.

The USD gained strength against the JPY, reaching a two-week high supported by hawkish expectations from the Federal Reserve. BoJ Governor Kazuo Ueda’s comments, coupled with a broad-based USD rally, pushed the USD/JPY pair to the 150.50 region during the early European session. With this upward movement, the currency pair reversed a significant portion of its recent corrective decline and moved closer to its year-to-date peak reached in February. The market sentiment was also influenced by positive wage growth in Japan and stronger-than-expected inflation data, contributing to the overall dynamics of the USD/JPY pair.

Looking ahead, technical analysis suggests that the USD/JPY pair is poised to challenge the year-to-date high and potentially breach the 151.00 mark. A sustained move beyond key levels could signal further upside momentum for the pair. However, downside protection is seen around the 150.00 mark, with potential support levels identified to prevent a significant decline. Traders are cautiously awaiting the outcomes of the BoJ policy decision and the Federal Open Market Committee meeting, which could further impact the direction of the USD/JPY pair.

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