The USD/JPY exchange rate declined from last week’s monthly highs after the US news left investors disappointed and the Bank of Japan (BoJ) has lessen the optimism on stimulus talk.   

The currency pair turned to the downside amid Wednesday’s session, but investors initiates the exchange rate to lift above 100.00 key level.

Given a weak US data for the week, it suggests that the dollar’s recovery options is limited. However, the pair is expected to recover despite higher market demand for the Yen if Thursday’s Japanese datasets will leave investors disappointed.   

Although the US data will report an upbeat, it still won’t add an optimism for the Federal Reserve to start raising interest rates.  

As the world’s largest economy showed mixed results, it limits the investors’ reasons to buy into the dollar.

The pair had already lost about half a yen in value since last week’s monthly high of 104.2791, citing a weekly low level of 103.1907 during Monday’s session. Meanwhile, USD/JPY has been struggling to give back its gains amid a weak US data.  


Weaker USD/JPY on USD-selling

The pair was losing ground for three consecutive sessions today after reaching fresh peaks beyond 104.00 figures last week, which continued to undermine the dollar across the board.

Subsequently, skepticism over BoJ’s further easing seemed to heighten, which is likely to alter into further support for the safe haven JPY.  

The chart below illustrates USD/JPY response amid Friday’s session as the pair dropped over 3% after the BoJ disappointed the market. The pair settled at 105.272 on July 29 and gave a strong breakdown at three lines with support 104.230, 103.234, and 102.239 respectively.  

After a disappointing week, the pair gave back their losses as the likelihood of the upward movement on August 26 became visible, citing technical factors turned into positive before Yellen’s speech.



With a disappointing result during the day, we continue to see a bit of volatility in this currency pair. It appears that the 102.239 level below is supportive, thus it is expected that buyers will return.

The pair initially slipped amid Wednesday’s session, but recovered at 101.50 bullish level. It is essential to note that if the pair breaks out, the Bank of Japan is involved with the movement. For now, we are still waiting for a supportive candle for the pair to start going long.

What we have now is a volatile market, suggesting an unstable in the market is anticipated to persist. However, the market should initiate offering buy opportunities that are expected to go long if it is ideal for you to simply generate small increments after time.

Lastly, it is not ideal to sell as the likelihood of the markets could offer career changing opportunities.

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