USD/JPY Rebounds as Japanese Yen Faces Pressure
The Japanese Yen weakened against the US Dollar on Monday, as uncertainty about the Bank of Japan's (BoJ) monetary policy and rising geopolitical tensions weighed on the Yen.
The BoJ's potential rate hikes and comments from Japanese authorities about possible government intervention to support the Yen failed to provide significant support. Meanwhile, the upbeat market mood and renewed US Dollar buying pushed the USD/JPY pair higher.
Key Factors:
- BoJ Rate Hikes: Uncertainty about the timing and pace of BoJ rate hikes weakened the Yen.
- Government Intervention: Comments from Japanese authorities about potential government intervention to support the Yen were not enough to boost the currency.
- Market Mood: The upbeat market mood and renewed US Dollar buying supported the USD/JPY pair.
- Geopolitical Tensions: Escalating tensions in the Middle East and the risk of a broader regional war added pressure on the Yen.
Technical Outlook:
- The USD/JPY pair is currently trading above the 149.00 psychological level.
- A break below the 148.85 support level could lead to further declines.
- On the upside, a break above the 150.00 level could open the way for further gains.