The Japanese yen was the weakest G10 currency today. JPY began to weaken sharply after Governor Ueda’s speech, which was perceived as dovish by financial markets. At the moment, the losses have been partially recovered, but USDJPY is still up 0.11% at 150.1000.
The Governor of the Bank of Japan (BOJ), Kazuo Ueda, focused his speech on the state of the Japanese economy and the BOJ’s monetary policy outlook.
- State of inflation: Ueda noted that while inflation in Japan is rising, core inflation — excluding highly volatile components — remains slightly below the BOJ’s 2% target. He emphasized that the central bank has not yet fully achieved its price stability goal, and the recent high inflation was mainly due to temporary factors likely to subside and are not a reason for tightening monetary policy.
- Cautious policy approach: He stressed the importance of carefully monitoring economic and price developments before making any further monetary policy decisions, signaling a cautious and prudent approach to future changes.
- Impact of a weak yen: Ueda acknowledged that the weak yen has affected import prices, contributing to inflationary pressure. However, he clarified that the BOJ will not use monetary policy to directly influence exchange rates.
- Inflation risks: He emphasized the need for vigilance, as core inflation could potentially accelerate faster than current BOJ projections suggest.
Ueda’s comments were interpreted by the market as dovish, suggesting that the BOJ is unlikely to raise interest rates in the near term. Following Ueda’s speech, the Japanese yen weakened against the U.S. dollar, losing 0.40% to 150.6000.
USDJPY D1
In the long term, the USDJPY rate is at a key resistance level around 150 JPY per USD. If this level is broken, we could expect a move toward 151.8000–153.0000. Conversely, on the downside, the nearest support level lies just above 148.8000.
Source: xStation 5
The material on this page does not constitute financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other specific needs. All information provided, including opinions, market research, mathematical results and technical analyzes published on the Website or transmitted To you by other means, it is provided for information purposes only and should in no way be construed as an offer or solicitation for a transaction in any financial instrument, nor should the information provided be construed as advice of a legal or financial nature on which any investment decisions you make should be based exclusively To your level of understanding, investment objectives, financial situation, or other specific needs, any decision to act on the information published on the Website or sent to you by other means is entirely at your own risk if you In doubt or unsure about your understanding of a particular product, instrument, service or transaction, you should seek professional or legal advice before trading. Investing in CFDs carries a high level of risk, as they are leveraged products and have small movements Often the market can result in much larger movements in the value of your investment, and this can work against you or in your favor. Please ensure you fully understand the risks involved, taking into account investments objectives and level of experience, before trading and, if necessary, seek independent advice.
