JPY Declines Again

The Japanese yen is declining against the US dollar for the seventh consecutive session. The USDJPY pair is approaching the 156.40 mark.

Japan’s government is poised for close cooperation with the Bank of Japan on currency market issues. This is needed to avoid disagreements on the goals of the policies they pursue, stated Shunichi Suzuki, the minister of finance, today. He noted that the Ministry of Finance is closely monitoring the currency and taking all possible measures. It is important to the authorities that the yen’s exchange rate remains stable and reflects fundamental indicators.

However, Suzuki did not communicate any specific exchange rate values. He also hardly said anything about financial interventions conducted in late April and early May to support the yen.

After falling earlier to 160.00 per US dollar, the yen has steadily risen. However, it expectedly came under pressure again now. Currency interventions have an intermittent impact and cannot create conditions for a fundamental change in the currency market environment.
The Japanese authorities are also concerned about the interest rate issue. Although no significant changes in the monetary policy structure are expected now, the market closely monitors this issue.

USD/JPY Technical Analysis

The USDJPY pair has completed a corrective wave on the H4 chart, reaching 156.16. Today, a consolidation range is forming around this level. The price is expected to break below it and continue the third decline wave, aiming for 151.40. After the price reaches this level, a correction towards 154.00 could start, followed by a decline to 149.00. Technically, this scenario is confirmed by the MACD oscillator, with its signal line above the zero level, poised to decline to new lows.

On the H1 chart, the USDJPY pair has completed a growth wave at 156.16, with a narrow consolidation range formed around this level. Today, the price attempts to break above it, aiming for 156.66. The range extension towards 156.81 is not ruled out. It is worth noting that all growth structures are only perceived as the extension of this wave, with the market able to continue a downtrend at any moment. Technically, this scenario is confirmed by the Stochastic oscillator, with its signal line above 80, poised to move to new lows.

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