USDJPY does not show a clear direction

US DOLLAR FORECAST – USDJPY
- U.S. dollar loses ground on Monday ahead of high-impact events later in the week
- Core PCE data and Powell’s speech on Friday will be the center of attention
- This article examines the technical outlook for USD/JPY

The dollar fell slightly on Monday, but losses were limited by higher U.S. Treasury yields. Traders took profits after last week's strong performance, while others held back due to upcoming high-impact events like the release of core PCE data and a speech by Powell on Friday.

USDJPY FORECAST - TECHNICAL ANALYSIS
USD/JPY showed no clear direction on Monday after last week's surge, with the pair hovering just under last year’s peak at 152.00. A breach of this barrier might prompt Japanese authorities to intervene in support of the yen, potentially limiting the breakout's longevity. Nevertheless, absent FX intervention, a surge beyond 152.00 could set the stage for a push towards 154.40.

Alternatively, if bears wrest control from bulls and initiate a reversal, support can be spotted at 150.90, followed by 149.75 subsequently. The pair might stabilize around these levels upon a retest, but if a breakdown occurs, a drop towards the 50-day simple moving average at 148.90 could be in the cards.

Comment:

USDJPY did not fluctuate much after BoJ Governor Ueda's statements

USDJPY is currently increasing slightly by 0.02% to 151.75, without much change after BoJ Governor Ueda's statements.

All eyes of the market are currently on the release of US CPI data for March today

Comment:

USDJPY dropped to 154.15 after statements from Japanese officials

Japanese Deputy Minister of Finance in charge of international affairs Kanda continued to intervene in currency with words, affirming the G7 statement reaffirming foreign exchange commitments based on Japan's stance

BoJ official Noguchi affirmed the need to maintain ultra-loose monetary policy

USDJPY decreased slightly to 154.15.

Comment:

One thing to note is that over the past several months, despite global instability, the USDJPY pair has still increased, proving that the USD is still more favored. However, the RSI indicator is in the overbought zone and shows signs of turning down. If the correction takes place, it may not be too negative and the main trend will still be uptrend.

Comment:

USDJPY rose 0.4% to a session high of 155.37 on Wednesday, marking the first time since June 1990 that the pair exceeded 155. USDJPY traded at 155.21 as of 5:27 a.m. this morning.

Comment:

USD/JPY decreased slightly from the peak to 155.97 before BOJ Governor Ueda's speech.

The BOJ's policy decision hasn't yielded much, and based on recent inflation data, it's hard to see an overly hawkish approach from Ueda. But that could be taken to mean they are comfortable with allowing the yen to fall further.

Ueda prepares to start the press conference. And usually, it will last about an hour or so. USD/JPY rose 0.2% to 155.97 on the day but was down from around 156.20 previously.