• Japanese yen is still based on factories on more boletus rate increases.
• The narrowing American-Japan gives a differential difference additionally brings the benefits of a lower swift JPA.
• Jastrzębia Pause Fed is the basis of USD and can support USD/JPy.

Japanese Jen (JPY) remains on the front foot the second in a row against the American counterpart and drags a pair of USD/JPY under the middle of 154.00 years during the Asian session on Thursday. Investors now seem to be convinced that the Bank of Japan (Bij) will enhance interest rates even more, which in turn is seen as JPy. What’s more, the recent narrowing of the Red-Japan difference turns out to be another factor driving in the lower swift JPA.

Meanwhile, the fears that the commercial policy of US President Donald Trump can turn into a global trade war may stop JPy Bulls from erecting aggressive factories. In addition, the Pause Hawkish Federal Reserve (FED) on Wednesday could act as a wind for the US dollar (USD) and limit the losses for the USD/JPY pair. Moving forward, a very anticipated meeting of the European Central Bank (ECB) can enhance market variability and affect the demand for secure JPY.

Japanese bulls of Jen

• The report from the December meeting of the Bank of Japan showed on Wednesday that members of the management board discussed how to apply the estimates of the economy’s neutral interest rate in order to determine further increases in loan costs.
• A former member of the management board of BIJ, Makoto Sakurai, said on Tuesday that expanding wage increases, perspectives for eternal price increases and solid economic growth give the central bank coverage in order to continue raising rates.
• The federal reserve, as was widely expected, decided to maintain the rates at the end of the two -day meeting on Wednesday and hit the hawk attitude, signaling direct plans for further foot reductions.
• At a press conference after the meeting, the chairman of the FED, Jerome Powell, said that we do not have to hurry to adapt our position of politics, and monetary policy is well prepared for challenges.
• Powell’s comments confirmed the view that the rates would remain higher for longer due to caution before the protectionist policy of US President Donald Trump, who could enhance inflation and act as a wind for an American dollar.
• The profitability of the 10-year US government bonds is fighting to apply the reflection of AMC from over a monthly trough among the uncertainty about the commercial policy of the Trump administration.
• On Thursday, Gazeta Asahi announced on Thursday that the plans are finalized to the meeting of Japan Prime Minister Shiger IShiba and US President Donald Trump in Washington on February 7.
• The decision of the European Central Bank’s policy may later cause some variability on financial markets. In addition, the Q4 GDP printout in the US should provide an impulse to the USD/JPY pair.

USD/JPY can test the minimum lowest levels around 153.70 again

The appearance of fresh sellers near the round number 156.00, followed by a decrease below 155.00 of the psychological mark confirms the failure through multi -month growing channel. In addition, oscillators on the daily table gain negative adhesion, which suggests that the path of the lowest resistance for the USD/JPY pair remains in the minus. Hence, some following weakness below the sign 154.00, in the direction of testing the minimum minimum around the region of 153.70 affected on Monday, looks like a clear possibility.

On the other hand, an attempt to recover can now face resistance near the round point 155.00 in front of the region 155.35-155.40. Any further movements can still be seen as an opportunity to sell and remain circumscribed near the sign 156.00. Then follows a week around the area of ​​156.25, which should act as a key key point. Constant strength, in addition, the last one can cause a fresh fight against a brief rally and lift a pair of USD/JPY to the region 156.70-156.75 on the way to a round number 157.00 and a horizontal barrier 157.60.