There is growing speculation that the Bank of Japan (BoJ) may make adjustments to its Yield Curve Control (YCC) policy at its July 28 meeting, which contributed to the recent gains in the Japanese Yen. The speculation stems from Japan’s May monthly employment survey, which confirmed accelerating wage growth, and comments made by Bank of Japan Deputy Governor Shinichi Uchida that some have interpreted as indicating imminent policy adjustments. We’ll see.
USDJPY moved sharply lower and reached a swing zone between 140.22 and 140.452. The price bounced up, trading above that area. Will buyers start leaning on it? On the upside, it could take a move above the broken 61.8% retracement level of the move higher from the June 1 low. The level comes in at 140.959 (it is called 141.00).
USDJPY hit the target. Resistance is at 141.00