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USD/JPY ended last week at 103.85 just points from Monday’s open at 103.89. Joseph Trevisani, an Analyst at FXStreet, sees limited declines ahead for the pair.

Key quotes

“The Bank of Japan and the Japanese government are not happy with the rising yen. The BoJ issued its ritual warning about watching the currency markets, but there is little to be done. It seems the Japanese economy and the central bank have lost the capacity for surprise.”

“Developments in the US side of the USD/JPY will determine the direction of the pair. Until the accumulation of government action and interest rate increases are sufficient to propel the USD/JPY higher and exit the current scenario, momentum should carry the pair lower.”