Yen Approaches Weekly Low as Dollar Gains on Strong US Data

The Japanese yen fell below 147 per dollar, approaching a one-week low, as the dollar gained strength following better-than-expected US jobless claims data that eased recession fears. Investors also adjusted their expectations for Federal Reserve interest rate cuts, with the market divided on whether the US central bank will implement a 25 or 50 basis point reduction in September. Domestically, investors are evaluating the outlook for the Bank of Japan’s monetary policy after Deputy Governor Shinichi Uchida stated this week that the central bank would not raise rates in an unstable market. Additionally, the summary of opinions from the BOJ’s July policy meeting revealed that some members advocated for further rate hikes, with one member suggesting that rates should eventually be raised to at least 1%.

The first resistance level is at 148.00. If this level is surpassed, the next targets will be 149.30 and 150.90. On the downside, the initial support is at 145.60; if this level is breached, the next support levels to watch will be 144.00 and 141.70.