In early Asian trading on Friday, the USD/JPY pair maintained positive momentum for the second consecutive day at around 151.45. The Bank of Japan’s (BoJ) cautious approach to maintaining accommodative monetary policy conditions has weighed on the Japanese Yen (JPY). Additionally, hawkish comments from Federal Reserve officials have provided some support for the US dollar (USD) and USD/JPY.
Tokyo’s core consumer price index rose 2.6% year-on-year in March, following a 2.6% rise in February, according to data released by Japan’s statistics bureau. Meanwhile, Tokyo’s consumer price index, which excludes fresh food and energy, rose 2.9% year-on-year, slowing from a 3.1% rise in February. Nevertheless, the yen remains on the defensive following Japan’s inflation data and comments from Japanese authorities.
On Thursday, Japan’s Prime Minister Fumio Kishida said it was appropriate for the central bank to “maintain favorable financial conditions.” Kishida also said the government will continue to work closely with the Bank of Japan to ensure wage increases continue and the economy emerges from deflation.
Trading Recommendation: Trade in the 151.00-151.80 channel on a bounce from the level.
Source: FreshForex
https://forexnews.pro/2024/04/01/usdjpy-forecast-uncertain-sentiment-on-yen/
