The US dollar fell against the Japanese yen again, with the increasing talk about customs tariffs and high interest rates in Japan, which led to the decline in the dollar.
- summary:
- The US dollar pair against the Japanese yen was weak due to concerns about the impact of customs tariffs on the American economy amid the morale of interest rates from Japan.
The power of the Japanese yen was strengthened more against the US dollar on Friday, as the US dollar against the Japanese yen re -tested its lowest weekly levels at 154.83. The currency pair is weak due to the weak basics of the dollar, which is confirmed by concerns about the impact of American commercial tariffs and weak American job data.
US President Donald Trump’s speech issued news headlines as he repeated his position that he may impose sanctions on multiple countries, including China, Canada, Mexico and the euro area. Analysts believe that customs definitions can disrupt the global economy and increase pressure on the US dollar.
The Bank of Japan (BOJ) raised interest rates by 25 basis points to 0.50 % on Thursday, in line with analysts’ expectations. This has led to high interest rates to its highest levels since 2008 and pushed the yen to rise. Moreover, the governor of the Central Bank, Kazo Idea, said that the board of directors may raise interest rates again after wage negotiations in the spring.
US President Donald Trump stated this week that customs tariffs can enter into force on the first of February. Fears about the impact of customs tariffs on the dollar have affected the DXY index to its lowest level in five weeks. In addition, the revenues on the standard US Treasury bonds decreased for 10 years by two basic points at the time of writing this report.
US dollar expectations against the Japanese yen
The US dollar is centered against the Japanese yen at 156.10, and the extended resistance at this level is likely to create the first support at 155.53. If the sellers strengthen their control of the market, the price may decrease below this level and may test the second support at 155.17.
On the other hand, buyers will control if the husband penetrates above 156.10. The momentum is likely to move up and face the first obstacle at 156.47. However, the strongest momentum can penetrate above this level and nullify the declining narration. If the momentum is strengthened, the gains for the second resistance test may extend at 156.75.
