- The Japanese Yen weakens for sixth consecutive session, with the USD/JPY, going up to its highest level since April.
- The Bank of Japan maintains its policy rate at 0.50% without changes per fourth consecutive meeting.
- The BOJ raises its prognosis of inflation for fiscal year to 2.7%, driven by food prices pressure, but warns that domestic consumption remains fragile.
The Japanese Yen (JPY) weakens for the sixth consecutive day against the US dollar, with the USD/JPy torque shooting at its highest level in more than four months after the Bank of Japan (Boj) maintained its interest rate in the short term stable at 0.50% by the fourth consecutive meeting, as expected widely, but the tone and the future guide that accompanied it caused it to cause it. Dovish on the market.
At the time of writing, the USD/JPY is rising, decisively breaking above the key psychological barrier in 150.00 and oscillating about 150.72 during negotiation hours in America, with an increase of almost 0.85% in the day.
At the BOJ press conference on Thursday morning, Governor Kazuo Ueda explained that the BOJ had unanimously decided to maintain the stable short -term interest rate, while raising its underlying consumer inflation prognosis for the current fiscal year to 2.7%, from the previous 2.2%. The Governor Ueda emphasized that any future increase in interest rates would depend on the data, and the BOJ would not necessarily wait until the underlying inflation reaches the goal of 2% before acting. On the other hand, the Central Bank would respond once it becomes “highly probable” that inflation sustainably reaches that level, especially if it is accompanied by a stronger salary growth. Although he acknowledged that the trend of inflation is improving, Ueda said that much of the pressure on prices remains driven by the offer, particularly due to the high food costs. He warned that premature hardening could suppress internal consumption, which is still fragile.
The governor also welcomed the recent commercial agreement between the US and Japan, qualifying it as a “great step forward” in the reduction of economic uncertainty. However, he warned that the complete impact of changes in commercial dynamics and tariffs is yet to be seen. He also explained that the recent fluctuations in the Japanese Yen were within the range anticipated by the BOJ and have not materially altered their inflation perspective.
From a technical point of view, the USD/JPY has confirmed a bullish breakdown from an ascending triangle, which is typically a continuation pattern that points to a greater rise. After re -testing the upper limit of the triangle about 146.00, the torque bounces sharply, validating the rupture and reinforcing the upward configuration. The pair is now negotiated above its short -term mobile socks, supported by a strong ascending impulse. The movement was further reinforced by a sustained rise above the exponential (EMA) mobile average of 100 days in 146.77 and the 200 -day EMA in 147.99, both act now as dynamic support levels.
The successful re-provoking of the pattern of the ascending triangle suggests that buyers have regained control, with the price action now pointing to the next levels of resistance in the maximum of April 151.08 and the maximum of February about 154.57. Down, the immediate support is found in 149.00, followed by the 200 -day EMA.
The impulse indicators are aligned with the bullish bias. The Relative Force Index (RSI) is in a trend about 69, approaching the overcompra territory, while the convergence/divergence indicator of mobile socks (MACD) remains in bullish alignment with an increasing gap between the MACD and signal lines. The increasing histogram bars confirm a sustained ascending impulse.
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.