According to FXStreet, on October 25, the Japanese Yen (JPY) had difficulty gaining value against the US Dollar. Currently, the Yen has stabilized after recovering from its lowest level since July.
Latest data showed that business activity in Japan's manufacturing and services sectors contracted in October. In addition, core inflation in Tokyo fell below the Bank of Japan's (BoJ) 2% target, reducing expectations of a rate hike in 2024, providing momentum for the JPY to appreciate.
In addition, political uncertainty ahead of the Japanese election, coupled with the generally positive market sentiment, has made the Yen lose its appeal as a “safe haven”.
Meanwhile, buying of the US dollar (USD) on dips was also fueled by expectations that the US Federal Reserve (Fed) will cut interest rates more modestly, sending the USD/JPY pair closer to 152.00.
According to technical analysis, if the USD/JPY pair falls below 151.60-151.55, the price may continue to fall towards 151.00. If it falls further, it may find a strong support level around 150.65. If the price breaks through this level, it will be a sign that the recent rally is over and a downtrend may be in the offing.
Conversely, if the price rises above 152.00, it could continue to climb towards the 152.60-152.65 zone. If it continues to rise, the USD/JPY pair could reach 153.00. If the price breaks above 153.20, it could continue to rise towards 154.00 and 154.30.
According to Lao Dong, at 4:00 p.m. on October 25, the USD/JPY exchange rate is currently fluctuating between 151.46-152.11 JPY/USD.
See more news about Yen exchange rates HERE.
