USD/JPY Steady Near 149.50 as BoJ Holds Rates, Market Awaits Fed Decision

The USD/JPY pair remains stable around 149.50 in Wednesday’s Asian session after the Bank of Japan (BoJ) left interest rates unchanged at 0.50% in its latest monetary policy decision. While the move was widely expected, traders are now focusing on BoJ Governor Kazuo Ueda’s press conference for any hints on future rate hikes.

Key Market Drivers

🔹 Bank of Japan Maintains Ultra-Loose Policy – The BoJ refrained from any policy shift, maintaining its long-standing accommodative stance, keeping downward pressure on the Japanese Yen (JPY).
🔹 US-Russia Peace Talks Bring Risk-On Sentiment – Optimism surrounding potential peace negotiations between the U.S. and Russia over Ukraine has lifted risk appetite, reducing safe-haven demand for the Yen.
🔹 Trump’s Trade Tariff Plans Weigh on USD – Fears that President Trump’s aggressive tariff agenda could slow U.S. economic growth are capping upside momentum for the U.S. Dollar (USD) against most major peers, despite its strength against JPY.
🔹 Federal Reserve Policy Decision in Focus – Markets are awaiting Wednesday’s Federal Reserve (Fed) interest rate decision, which will be a key driver for USD/JPY direction in the coming days.

Technical Overview: Key Support & Resistance Levels

📉 Support Levels:
✅ 149.00 – Psychological support zone
✅ 148.30 – 50-day SMA
✅ 147.60 – March swing low

📈 Resistance Levels:
✅ 149.80 – Intraday resistance
✅ 150.20 – Major psychological level
✅ 151.00 – Year-to-date high

Looking Ahead: What’s Next for USD/JPY?

🔹 BoJ Press Conference (Today) – Governor Ueda’s comments could offer guidance on whether the BoJ plans to normalize monetary policy in 2024, which may impact the Yen’s direction.
🔹 Federal Reserve Rate Decision (Wednesday) – Investors will watch for signals on future rate cuts, with markets currently pricing in two potential rate cuts in 2024.
🔹 Japan CPI Data (Friday) – The National Consumer Price Index (CPI) for February could provide clues on inflation trends and influence future BoJ policy moves.

The USD/JPY pair remains in consolidation mode, with traders awaiting monetary policy developments from both the Fed and BoJ. The pair could see increased volatility around 150.00 if U.S. economic data surprises to the upside or if hawkish Fed rhetoric limits expectations for aggressive rate cuts.

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