The Japanese Yen (JPY) fell slightly against the US Dollar (USD) on Wednesday amid doubts that the Bank of Japan (BoJ) will continue to raise interest rates, according to FXStreet. On Tuesday, in a statement from its September monetary policy meeting, the BoJ said it has no immediate plans to raise interest rates. It will continue to maintain its economic support policy, but is ready to change it if the economic situation improves significantly.
The US dollar was supported by investor caution amid tensions in the Middle East. However, a weaker-than-expected US Manufacturing PMI for September may have sent the greenback slightly lower. Traders are now looking ahead to the upcoming US jobs report and comments from the Federal Reserve for further direction.
The Relative Strength Index (RSI) is tilting towards further declines, although its slope is currently quite flat. This suggests that the market may be entering a consolidation phase. In other words, the USD/JPY pair could trade in the 142.98-144.53 range in the short term.
If the bulls can break above the top of this range, the next target would be 145.00, followed by the 50-day moving average (DMA) at 145.47. A break above this level could see the Yen reach 147.80-148.00.
Conversely, if USD/JPY falls below 142.98, the September 30 cycle low of 141.65 could reappear. If further weakness continues, the next stop would be the same low as September 16, at 139.58.
According to Lao Dong, at 10:00 a.m. on October 2, the exchange rate of the Japanese Yen against the US dollar is currently hovering around the highest low of the day at 144.00 JPY/USD and the lowest at 143.43 JPY/USD.
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