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USD/JPY rebounds above 158 as yen pressured by BoJ signals
The pair traded at 158.38, after slipping earlier in the week to 156.68, with Bank of Japan commentary and Japan’s current account deficit helping weigh on the yen.
The US dollar rebounded against the Japanese yen on Monday, pushing USD/JPY back above the 158.00 level after a bounce from Friday’s low at 156.68. FXStreet said the pair was last around 158.38, holding within an ascending channel that began at August 3 lows near 155.23.
FXStreet attributed yen weakness to a Bank of Japan summary of opinions that flagged concerns about rising inflation while also showing a split on how quickly rate hikes should proceed. Separately, Japan’s current account posted its first deficit in about one-and-a-half years, which FXStreet said added downside pressure on the yen.
The move also came after US labor data cooled expectations for near term Fed tightening. According to the US Bureau of Labor Statistics, net employment declined by 23K in July versus an 80K increase expected, with prior months revised sharply lower, and FXStreet said those figures helped drive the USD lower across the board before Monday’s retracement.
FXStreet also outlined market levels tied to technical indicators, saying bulls are targeting last week’s highs around 158.65, with a next test near the channel top around 159.25. On the downside, it pointed to support near 157.05, as well as Friday’s low around 156.70, before the August 3 low near 155.23.
Latest closeUSD/JPY 158.52 ▲0.6%