The Japanese Yen continues to lose ground following the dovish remarks from BoJ Deputy Governor Shinichi Uchida. BoJ’s Uchida emphasized that the central bank must maintain its current level of monetary easing for the time being. CME FedWatch tool suggests 67.5% odds of a 50-basis point Fed rate cut in September, up from 13.2% last week. The Japanese Yen extends its losses against the US Dollar for the second successive day.
The daily chart analysis shows that the pair continues to rise toward the nine-day Exponential Moving Average at 148.57 level, suggesting a weakening of the bearish momentum. Additionally, the 14-day Relative Strength Index is below 30, signaling that the currency pair is oversold and could see a short-term rebound. Regarding support, the USD/JPY pair may test the throwback support at the 140.25 level, which was recorded in December.