Japanese yen

Japanese Yen is on the defensive as the USD/JPY bulls attempts to snap a three-week losing streak. Battle lines drawn on the USD/JPY weekly technical chart.

USD/JPY tested a major level earlier this week but, so far, it’s held as support. EUR/JPY and GBP/JPY present compelling backdrops on each side of the Japanese Yen.

USD/JPY became a source of equity selling last summer as the carry trade unwound aggressively.

Despite the sharp declines seen in USD/JPY in recent sessions, a recovery of nearly 1% has been observed, favoring the U.S. dollar.

The Japanese yen was the weakest currency on Thursday, with traders lowering their expectations of a BOJ hike in light of Trump's tariffs. GBP/JPY was the outperformer as traders are also lowering their expectations of BOE cuts. But whether USD/JPY can break out above its 200-day EMA and the 152 handle likely requires a soft set of inflation figures from Tokyo and a stronger-than-expected US PCE report today.

Yen weakness has continued to show, and USD/JPY has jumped up to a key Fibonacci level on the way to fresh three-week highs.

One day after the Federal Reserve’s decision, USD/JPY remains neutral, with a daily variation of less than 0.5% in the last few trading hours.

USD/JPY has been in a grinding bear trend for much of the year, but that doesn’t mean that it’s been a simple matter for traders.

USD/JPY has been in a consistent sell-off for most of the year, but sellers still haven’t been able to run a breakdown resembling last summer’s carry unwind event.

The U.S. Dollar is putting in a sizable bounce today, but USD/JPY has been more reserved, rallying up for a re-test of the 150.00 psychological level.

The Japanese Yen has shown significant drive around U.S. CPI reports over the past few years, setting the stage for tomorrow’s release.