Yen falls after FOMC: price patterns in USDJPY. The yen’s decline in value versus other currencies is still deeper and significant.

USDJPY. Major resistance is being tested yet again

The RBA with the Bank of Canada’s unexpected interest rate increases this past week. In addition to rising longer-term US interest rates, widely increasing risk appetite. And other factors all contribute to a more negative outlook concerning the weaker yield yen relative with certain of its counterparts.

Despite keeping interest rates steady on Wed, the US Fed said that the cycle given raising rates is still ongoing and that they might have to increase by as many as 50 bps. Due to the of the US economy’s resiliency with a weaker-than-projected slowdown in inflation. The BoJ summit on Friday seems the primary focus at present; The central bank is anticipated to confirm the JPY’s negative outlook by keeping its sheer loose monetary policy in effect. And making no alterations regarding its yield-curve management strategy.

USDJPY Key Points

With the largest daily advances in a month, USDJPY soars to its best marks as of Nov 2022.

Investors of the Yen duo are favored by the upward breach of its prior annual top of about 141.00. As well as the impending bullish cross on the MACD.

Further gain is constrained by elevated RSI and an upward resistance zone from the start of March.

BoJ to persist with Ultra loose monetary stance

Kazuo Ueda, of the BoJ, has reaffirmed that despite the fact that the inflation rate of 2% objective is still some way off. The bank would calmly continue its loose monetary stance. Statistics issued just last week revealed that domestic consumption with an increase in inventory helped Japan’s economy expand. Which are above expectations in the January to March period.

Technical Perspective

Sliding into significant barrier in USDJPY

The topmost point of an ascending channel that began at the start of 2023. And coincided on a peak of 142.25 at the close of the year 2022 is being tested once more by the USDJPY. A further obstacle may be seen over the location (at the around 143.75) along the middle line of the forked stream from Jan. These are still signs of the upswing continuing, as the USDJPY has a danger of moving further. After its recent comeback from significant support near the March top of 137.90. The upward push wouldn’t stop until the duo broke beyond the 138.50 level bottom from June’s beginnings.