USD/JPY Tests Key Resistance at 200-Day Moving Average Amid BOJ Policy Stance

USD, to JPY, is nearing a resistance level following the Bank of Japan’s decision to keep its policy unchanged.

The USD to JPY exchange rate is currently challenging a resistance level of around 152 with the presence of its 200-day moving average after the policy decision by the Bank of Japan (BOJ).

As predicted by experts in the field of economics and finance analysis, the Bank of Japan decided to leave its policy interest rate at 0.50% and expressed a cautious approach towards any potential tightening measures. Governor Kazuo Ueda acknowledged the possibility of increasing interest rates if the economic situation demands it. Nonetheless, the central bank highlighted its concerns regarding uncertainties, with a specific focus on risks associated with international trade.

It is anticipated by the market that interest rates in Japan will increase steadily over the next two years and could reach a level between 1.0% and 1.25%. Traders predict that the next hike of 25 basis points is probable to happen in September, based on statements from the BOJ. The Bank of Japan’s communications indicate a cautious approach towards further yen devaluation, which has contributed to stabilizing the weakened JPY.

The USD to JPY currency pair briefly surpassed the 150 mark before retracing towards the 149.20 level, with resistance noted around 152. Bear in mind that upcoming movements are likely to be influenced by prevailing market sentiments and decisions made by central banks.