Japanese Yen holds as traders switch focus to BoJ hike and Warsh’s first Fed meeting
The USD/JPY pair trades near the 160.20 region on Friday as the Japanese Yen (JPY) remains slightly under pressure, while investors prepare for a key central bank week featuring the Bank of Japan's (BoJ) policy decision and Kevin Warsh’s first Federal Reserve (Fed) meeting as Chair.
The Yen continues to struggle despite rising expectations that the BoJ could raise interest rates next week. However, the move may not be enough to provide sustained support for the Yen if the BoJ avoids providing strong guidance on further tightening.
The upcoming FOMC meeting will be closely watched as newly appointed Fed Chair Kevin Warsh takes the reins, with traders focusing on the statement, projections, and press conference for signs of whether the Fed could maintain a hawkish stance later this year.
Short-term technical analysis:
On the 4-hour chart, USD/JPY trades at 160.21. The pair is holding above the 100-period Simple Moving Average (SMA) at 159.72, but it remains capped just under the 20-period SMA near 160.35, keeping the near-term tone broadly neutral with a slight topside constraint. The Relative Strength Index (RSI) around 49 underscores this consolidative stance, suggesting waning upside momentum after the recent pullback.
On the topside, initial resistance is aligned at 160.34, with the 20-period SMA at 160.35 and a higher horizontal barrier at 160.38 forming a tight supply zone that bulls must clear to reopen a stronger advance. On the downside, immediate support emerges at 160.17, ahead of a firmer floor at 159.96, while the 100-period SMA at 159.72 is positioned as a deeper dynamic support level in case selling pressure extends.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Federal Reserve meeting minutes: All 19 policymakers support a rate hike in September, but reasons vary; most expect further hikes this year, suggesting no urgency in October.
Most officials view a September interest rate hike as an "insurance" measure against stubborn inflation; a minority see it as a necessary step to curb inflation. Overall, there is no indication of a desire to push for consecutive rate hikes. The "New Fed News Agency" emphasized the minutes: "Most participants believe that it may be appropriate to raise interest rates again before the end of the year." Nearly all officials believe inflation remains elevated and the labor market is close to full employment. Many noted that, despite the rise in long-term U.S. Treasury yields, financial conditions are still conducive to economic growth. Some officials believe that AI will boost investment and productivity, but may also contribute to inflation. The minutes revealed that the U.S.-Japan joint intervention in July to support the yen was a U.S. Treasury action, with no Federal Reserve funds used.
Solana Consolidates After Sharp Expansion
FLOKI Recovery Tests Key Resistance
100 Million Barrels Shrinkage? Reports Say EU Believes Oil Reserve Release Plan Mainly Fulfills Previous Commitments, Not New Quotas
Last Friday, G7 member countries agreed to release up to 100 million barrels of crude oil and diesel reserves. The IEA had announced a plan to release 400 million barrels in March, and as of last Friday, about 75 million barrels had yet to be released. Most EU member states believe that this action is simply fulfilling previous commitments rather than adding new releases. Regarding the earlier-than-scheduled release of diesel stocks emphasized in last week's G7 agreement, EU member states consider it feasible, but on a limited scale.
Crypto prices
More
