USD/JPY: Yen Remaining Under Pressure

As widely expected, Bank of Japan maintained its monetary policy as is without any changes, therefore, the Yen remained under pressure as a result of increasing risk appetite and walking away from safe heaven assets. This was after the concerns eased about the French elections and the fear of having a military conflict in the Korean Peninsula. During yesterday’s transactions, the USD/JPY rose to 111.77 before pulling back to the support at 110.88, and then settled around 111.45 at the time of writing, after the Trump administration’s announcement of the long awaited tax plan which presented no support to the USD against other majors. The Yen’s movement will continue to be dominated by the market sentiment towards Trump’s plans and the renewed international geopolitical fears. 

Technically: the USD/JPY movement is still in an upward channel and will be stronger if the price established above 112.00 level, which will give the pair a new power to make gains. The USD is still the lower gainer against the JPY, unlike other currencies like the EUR, GBP, yet, the USD received lots of negativity because of Trump’s policy and the recent negative US economic data. 

On the downside: the nearest support areas are currently located at 111.00 and 110.30, and any movement below the latter would be a return to the downside momentum for the pair and the end of current upward bounce. 

On the economic data front: the economic agenda today shows that the pair has an important date after Bank of Japan policy announcement along with US data in the form of Durable Goods orders and the jobless claims.