Japanese Yen Today - USD/JPY sellers flex strength around 146.40, marking the first intraday decline, down 0.10% today, ahead of the European session. Thus, the Yen pair justifies the recent bias shift toward the Bank of Japan (BoJ) and the inflation conditions in Japan.
 
However, gloomy concerns regarding Japan's employment situation and a cautious atmosphere ahead of top-tier data/events are pushing Yen pair sellers. Despite this, Japan's unemployment rate offered a surprising rise to 2.7% for July compared to the forecast of 2.5% and the previous figure, while the Job/Application Ratio fell to 1.29 for the month compared to the forecast of 1.30 and the previous reading.
 
More importantly, the Japanese government recently released its annual report indicating a turning point in inflation conditions in Japan after 25 years of efforts to combat deflation. Consequently, the hawkish bias towards the BoJ is gaining momentum. On Monday, mixed details from Japan's Coincident Index for June and the Leading Economic Index for that month also prompted traders of the USD/JPY pair.
 
It is worth noting that BoJ Governor Kazuo Ueda cited Japan's inflation being slightly below target to maintain the current ultra-loose monetary policy at the Jackson Hole Symposium, which in turn pushed sellers of this currency pair.
 
Elsewhere, low yields alongside a weakening US Dollar ahead of today’s US Consumer Confidence data for August are expected to pressure the Japanese Yen today.
 
The yield on 10-year US Treasury bonds continues to decline and is around 4.19%, while the US Dollar Index (DXY) is also experiencing a drop and is now at 103.85. Notably, the coupon on US two-year bonds has reversed from its highest level since 2007 the previous day and remains pressured near 5.00% at the time of this report.
 
On the other hand, Goldman Sachs highlights the prospects for US growth and the Bank of Japan's commitment to loose monetary policy by forecasting that the USD/JPY pair will reach a 30-year high around 155.00. This is an increase from the previous forecast of 135.00.
 
Looking ahead, concerns surrounding the monetary policies of the Federal Reserve (Fed) and the Bank of Japan (BoJ) will converge with risk factors that will be the focus for traders in the USD/JPY currency pair before the Consumer Confidence Index data from the US Conference Board (CB) for August, which is expected to reach 116.2 compared to the previous figure of 117.00.
 
In technical analysis, the 14-period Relative Strength Index (RSI), which is nearing overbought levels, combined with difficulty breaking through the two-month resistance line, particularly around 146.80, indicates that USD/JPY prices are likely to retreat towards the support zone around 144.60-50, which has been a significant point since April and consists of various notable price levels.
 
Peringatan!
 
This analysis is based on views from fundamental and technical perspectives from trusted sources and is not intended as advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct independent research on other forex information as a reference for your trading.
 
Get updated news and articles from GIC Indonesia; you can check Google News daily to stay informed about the latest updates in the forex and crypto world. Trade also at GICTrade using an ECN account to enjoy trading with low spreads starting from zero!