USD/JPY: Consolidation holds ahead of BoJ decision – Scotiabank

Scotiabank strategists Shaun Osborne and Eric Theoret highlight that the Japanese Yen (JPY) is flat against the US Dollar (USD), underperforming G10 peers in subdued trading. USD/JPY price action suggests consolidation in a 157.50–160.50 band, with a flat RSI signaling limited momentum. A weaker trade balance on higher energy imports and Friday’s Consumer Price Index (CPI) release set the tone ahead of next week’s Bank of Japan (BoJ) policy meeting.

Flat momentum inside 157.50–160.50 band

"The yen is entering Wednesday’s NA session unchanged vs. the USD and a relative underperformer among the G10 in overall quiet trade."

"The price action for USD/JPY leans toward consolidation and a flat local range roughly bound between 157.50 and 160.50."

"The RSI is flat, and offers little in terms of momentum."

"Fundamental releases have included a disappointing trade release, with a smaller balance dragged down by higher (energy) imports in March."

"Near-term risk lies with Friday’s March CPI release, the last major data point ahead of next week’s BoJ policy decision."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)