Recent Performance:
• Price Movement: The U.S. dollar reached a three-week high against the Japanese yen, peaking at 150.92 yen before settling at 150.56 yen. This upward trend was bolstered by strong U.S. services data and cautious optimism regarding trade tariffs.
Technical Analysis:
• Support and Resistance Levels: The USD/JPY pair edged lower to 146.52 last week but has since recovered. Initial bias remains neutral for further consolidations. Upside recovery should be limited by the 150.92 support-turned-resistance level. On the downside, sustained trading below the 61.8% retracement level of 146.32 could pave the way to the 139.57 support.
• Technical Indicators: Current technical ratings for USD/JPY are neutral, suggesting a period of consolidation. The one-week rating remains neutral, while the one-month rating indicates a buy signal.
Fundamental Factors:
• U.S. Economic Data: Robust U.S. services data have supported the dollar's strength. Additionally, President Trump's indication that not all threatened tariffs would be imposed on April 2, with potential exemptions for some countries, has alleviated fears of an economic slowdown.
• Bank of Japan (BoJ) Policy: The BoJ maintained interest rates at 0.5% amid tariff uncertainties. The narrowing interest rate differentials between Japan and other economies have been a key theme affecting the yen's valuation.