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      USD/JPY Stabilizes Near 155.00 Support Following Fed Comments

      The US dollar experienced a decline against multiple currencies, including the Japanese yen, after dovish remarks from Federal Reserve Governor Christopher Waller. Waller indicated a reluctance to raise interest rates in a disinflationary environment, suggesting that the upcoming Consumer Price Index (CPI) report will heavily influence the Fed's September rate decision. Market expectations for a rate hike have decreased, with only a 48% probability now priced in for the meeting.

      In contrast, the Japanese yen showed signs of strength, attributed to a hawkish repricing following comments from Bank of Japan member Takata. However, the yen's gains may also stem from profit-taking ahead of significant resistance at the 160.50 level for the USD/JPY pair. Despite some fluctuations, the overall interest rate expectations have remained stable, with traders now looking for forward guidance from the Bank of Japan.

      Technically, the USD/JPY pair has bounced back from the key support level of 155.00, as buyers entered the market. The price action indicates a potential rally towards the 160.50 resistance, while sellers are eyeing a break below 155.00 to increase bearish positions. The upcoming US Non-Farm Payroll (NFP) report is expected to be a significant catalyst for market movement, with traders anticipating notable deviations from expectations to drive reactions.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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