Trading Insights

USD/JPY

Yen Strengthens as BoJ Rate Hike Looms Despite Rising Debt Costs

USD weakness post-FOMC was expected as YCC concerns created bond market fear. BoJ decision on rates likely to be hike, probably driving JPY weakness this week. Only issue: cost of Japanese debt is much higher, which will worsen because of Takaichi government stimulus package to bolster consumption.

Key Levels: Support at 154.616 | Resistance at 158.232

Investor Takeaway: RSI above MA line trending up with MACD buying pressures; strength driven partially by mixed jobs report, but Thursday inflation data risk persists alongside rising Japanese debt costs.

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