USD/JPY steady on Friday after another week of gains

US Dollar broadly eased on Friday, but held close to flat against Yen.
Japanese National CPI inflation ticked lower in April.
Risk appetite recovered after US consumer inflation outlook improved.

USD/JPY churned on Friday, wrapping up close to where it started the day, just below the 157.00 handle, as investors looked to recover balance after a tense week.

Broad hopes for a September rate cut from the Federal Reserve (Fed) were knocked back this week after rate markets repriced odds of at least a quarter-point cut in September to less than even. Rate markets were pricing in upwards of 70% odds of a 25-basis-point trim in September at the start of the week.

Forecasting the Coming Week: Fedspeak and PCE remain in the spotlight

Japan’s National Consumer Price Index (CPI) inflation eased to 2.5% YoY in April, but the Bank of Japan (BoJ) remains bitterly determined to hold interest rates at rock-bottom, near-negative levels until they see an expected downturn in inflation hold above 2%. The BoJ currently expects CPI inflation to slump below 2.0% through 2025 and some of 2026.

With the BoJ squarely focused on fears of disinflation, depressed Japanese interest rates continue to erode the Yen. The BoJ and Japan’s Ministry of Finance is widely believed to have directly intervened in global markets in early May, and the BoJ’s financial operations reporting reveal a nine trillion Yen gap between reported operations spending and broker forecasts, adding weight to “Yentervention” speculation. 

Despite operations in global markets, the Yen continues to shed weight, and Yen-based pairs are grinding back towards record highs.

USD/JPY technical outlook

USD/JPY cycled the 157.00 handle on Friday, churning chart paper close to near-term highs. USD/JPY has closed in the green for all but three of the last 15 consecutive trading days, recovering from a post-”Yentervention” low near 152.00.

The pair is still trading down from multi-year highs set in late April above 160.00, but USD/JPY continues to drift deeper into bull country above the 200-day Exponential Moving Average (EMA) at 149.13.

USD/JPY hourly chart

USD/JPY daily chart

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-steady-on-friday-after-another-week-of-gains-202405242109