The Japanese Yen (JPY) remained flat against the US Dollar (USD), underperforming its G10 peers in subdued trading, according to Scotiabank strategists Shaun Osborne and Eric Theoret [1]. The USD/JPY currency pair is consolidating within a range of 157.50 to 160.50, with a flat Relative Strength Index (RSI) indicating limited momentum in the market [1]. Recent fundamental data included a disappointing trade balance for Japan, which was negatively impacted by higher energy imports in March [1].
Market participants are closely watching Friday’s March Consumer Price Index (CPI) release, which is considered the last significant data point before the Bank of Japan’s (BoJ) policy meeting next week [1]. The outcome of these events is expected to influence near-term risk and potentially set the tone for USD/JPY price action going forward [1].
Overall, the market is in a holding pattern, with traders awaiting further direction from upcoming economic data and the BoJ’s policy decision [1].
CONCLUSION
USD/JPY is consolidating in a narrow range as traders await key economic data and the upcoming BoJ policy meeting. The lack of momentum and subdued trading reflect market uncertainty, with the next major move likely hinging on Friday’s CPI release and the central bank’s decision.