Japanese Yen's Comeback: Analyzing the Recent Market Shift

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USD/JPY bearish trend accelerates. Examine key support levels, BoJ meeting probabilities, and the yen's resurgence in the forex market.

Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.01% 🇪🇺EUR: -0....The Japanese yen appreciated against a basket of major currencies on Wednesday, one week ahead of the much-anticipated Bank of Japan meeting. The BoJ mentioned in their June meeting that details around reducing their balance sheet will be made available at the end of this month after disappointing market hopefuls last month.

It is hoped that reduced taxes and higher wages would stimulate a rise in local consumption and household sentiment to such a degree that the inflation target of 2% is likely to be breached consistently. The daily chart shows the oversold conditions that hinted at shorter-term bearish reversal which ultimately materialised. Since then, the pair has been riding the bearish wave lower, tagging the 160.00 and 155.00 markers on the way down.

 

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