Japanese Yen Set for Weekly GainThe Japanese yen weakened beyond 155.5 per dollar, marking its second straight decline as the dollar strengthened. The US imposed a 25% tariff on imports from Mexico and Canada, along with a 10% tariff on Chinese goods, triggering retaliatory actions from the affected nations. Although Japan was not directly targeted, its export-driven economy remains exposed to global trade disruptions.
A summary of discussions from the Bank of Japan’s January meeting indicated that policymakers considered the possibility of further interest rate hikes to counter inflationary pressures and a weakening yen. In January, the BOJ raised its policy rate and signaled its willingness to increase rates again if economic conditions and inflation trends warrant further action.
The key resistance level appears to be 155.90, with a break above it potentially targeting 158.70 and 160.00. On the downside, 153.80 is the first major support, followed by 151.90 and 149.20 if the price moves lower.
