USD/JPY Price Outlook: Implications of the BOJ Meeting on Downward Momentum
Monday, 18 March 2024, 10:07
USD/JPY Downward Momentum: BOJ's Policy Decision
USD/JPY failed to gather strong downside momentum despite recent movements in Treasury yields and cautious trades. The BOJ is expected to end negative rates and yield curve control, signaling a shift in policy direction. However, gradual policy changes may not lead to significant yen appreciation.
Market Dynamics and Yen Strength
- USD/JPY shorts are currently producing a negative carry.
- Higher Treasury yields may hinder yen appreciation.
- Rate differentials between the US and Japan are likely to narrow slowly.
Future Outlook and Technical Analysis
- The yen may benefit from fund repatriation towards the fiscal year-end.
- Support levels at 148.01-16 and 147.59 need to be broken for a bearish bias.
- Challenges lie ahead in breaking the 200-day moving average at 146.41.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.