Yen Weakens as USD/JPY Nears Key Resistance

USD/JPY

Fundamental Analysis

USD/JPY continues to rise, approaching the 145 level as the yen weakens for a third straight session ahead of the Bank of Japan’s policy decision. While the BOJ is expected to keep rates at 0.5%, investors are watching for signs of reduced bond purchases amid a sharp rise in long-term yields.

The U.S. dollar strengthened on inflation concerns and geopolitical tensions after President Trump called for a full evacuation of Tehran. His failure to reach a tax deal with Japanese PM Ishiba at the G7 also pressured the yen, while markets await signals from the Fed on a possible rate cut path next month.

Technical Analysis

USD/JPY is currently in a sideways trend with a mild recovery after the previous drop but still struggling to break above strong resistance. Price is ranging between 142.35 and 145.50.Recent sessions saw a slight increase in volume during up moves, supporting the current rebound. 

However, the latest session showed a bearish candle with low volume, indicating hesitation near resistance.Price has just crossed above all three EMAs, especially the EMA 200 — signaling short-term bullish momentum.

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