![[News] Japan Develops 10nm Nanoimprint Technology, with Potential to Tackle EUV Bottleneck – TrendForce](https://earth-news.info/wp-content/uploads/2025/12/329851-news-japan-develops-10nm-nanoimprint-technology-with-potential-to-tackle-euv-bottleneck-trendforce-360x180.jpg)
Japan’s Consumer Price Index (CPI) for June reports a YoY increase of 3.3%, slightly above the previous 3.2% figure, but falls short of the anticipated 3.5%.
Reuters report on BoJ’s monetary stance causes USD/JPY to break away from the 140.00 range seen through most of the Asian session.
The USD/JPY uptrend could continue based on interest rate differentials, but next week’s Fed and BoJ decisions are eyed.
USD/JPY rallied back above the 141.00 figure after rumors the Bank of Japan (BoJ) would not change its Yield Curve Control (YCC) emerged, spurring an upward reaction in the USD/JPY due to Japanese Yen (JPY) softness. The USD/JPY is exchanging hands at 141.71 after diving as low as 139.74.
Reports of the BoJ’s commitment to its dovish stance fuel USD/JPY rally, despite Japanese inflation data exceeding estimates
News emerging during the Asian session spurred JPY’s weakness on Reuters sources, saying the BoJ would stick to its YCC program and maintain its dovish stance. That comes after an earlier report that in Japan exceeded estimates by a tick, seen by traders as data that could trigger a reaction by the BoJ. The Consumer Price Index (CPI) for June came at 3.3% YoY, above the prior’s 3.2% reading but failed to overcome forecasts of 3.5%. Core CPI rose by 3.3% YoY, aligned with projections and above May’s number.
The USD/JPY seesawed around 140.00 throughout most of the Asian session before the Reuters report surfaced.
On the US front, data revealed during the week showed the economy is still resilient, despite Retail Sales slowing to 0.2%, below May’s 0.5%. Thursday’s US Initial Jobless Claims report for the week ending July 15 posted 228K unemployment fillings, below the 239K estimated, sparking fears the US Federal Reserve (Fed) might react to the numbers and increase rates past the following week’s monetary policy decision.
The CME FedWatch Tool, which tracks interest rate probabilities for the Fed, sees a 99.8% chance of a quarter of a percent hike on July 26, while for September, expects no change, and for November, odds moved from below 20% last week’s, to 28.0% as of writing.
To conclude, given the interest rate differentials, the USD/JPY uptrend might continue in the near term. But next week’s could be volatile, with the Fed and the BoJ set to deliver an update on their monetary policy. A hawkish surprise by the BoJ could rock the markets sharply, while the Fed is expected to maintain its “higher for longer” bias.
USD/JPY Price Analysis: Technical outlook
From a technical standpoint, the USD/JPY pair is set to continue upward biased, reclaiming during the session the Tenkan and Kijun-Sen level, with traders setting their eyes on the 142.00 mark. A breach of that level would expose last November’s 22 daily high at 142.24, followed by the top of the Ichimoku Cloud (Kumo) at 142.83, ahead of 143.00. Conversely, if USD/JPY drops below the Kijun-Sen level of 141.15, further downward action is expected, with the 20-day Exponential Moving Average (EMA) lying at 140.80, on top of the Senkou Span A level at 140.37.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/usd-jpy-soars-past-14100-as-bojs-would-sticks-to-dovish-stance-weakening-the-jpy-202307211540
