Significant increase in the US dollar against the Japanese yen
Bank of Japan announces maintaining monetary policy to support economic recovery
The US dollar has reached its highest levels against the Japanese yen in a year
The Bank of Japan has announced its commitment to maintaining a loose monetary policy and keeping Japanese interest rates unchanged
The currency pair is currently facing strong resistance at the level of 138.00
Economic events affecting the movement of the US dollar against the Japanese yen
The US dollar has experienced a significant increase against the Japanese yen since the end of last week following an announcement by the Bank of Japan. The new governor, Kazuo Oida, has stated that the bank will maintain its loose monetary policy and keep Japanese interest rates unchanged while conducting a wide-ranging review of those policies. The currency pair is currently trading near levels of 137.38 yen, having opened higher for the third consecutive trading session today.
The Bank of Japan has indicated that it is appropriate to maintain its current monetary policy to support the country's economic recovery, and it has confirmed its continued purchase of government bonds on a large scale. However, the central bank has decided to cancel its future guidance that pledged to maintain interest rates at current or low levels.
The most important pivotal levels affecting the movement of the US dollar against the Japanese yen
The USD/JPY pair has experienced a strong upward movement since the beginning of last week, with its rise extending to the resistance level of 138.00. However, the pair has faced corrections from this level multiple times. If the USD/JPY pair fails to break through the resistance level of 138.00, it may return to correct and test the levels of 135.00. Breaking through that level could further extend the correction to the support level of 133.00.
Alternatively, if the pair manages to break through the resistance level of 138.00 and remains above it, this may contribute to further upward movement to levels of 140.00. Breaking through that level may further extend the rise to the level of 142.00.
In summary, the pivotal levels to watch for in the USD/JPY pair are the resistance level of 138.00, the support level of 133.00, the level of 140.00, and the level of 142.00. The pair's movements at these levels can provide important insights into the future direction of the currency pair.