Trusted by over 15 Million Traders
The Most Awarded Broker
for a Reason
CATEGORIES
News
- Gold breaks through and follows up again
- The Fed's "dove" voice is getting louder, and bank credit in the United States i
- New business value hits another bright spot, AIA stock price approaches previous
- The Bank of England's decision comes to fruition, and the pound plummets! FTSE 1
- On 3.25, gold fluctuated and rose above the box. It fell back today and continue
market news
The policy duel between the Bank of Japan and the United States escalates, the yen ends its fifth consecutive decline, but the technical outlook lacks bullish confidence.
Wonderful introduction:
You don’t have to learn to be sad in your youth. What www.xmtraders.comes and goes is not worth the time. What I promised you, maybe it shouldn’t be a waste of time. Remember, the icy blue that stayed awake all night, is like the romance swallowed by purple jasmine, but the road is far away and the person has not returned. Where does the love stop?
Hello everyone, today XM Forex will bring you "[XM Group]: The policy duel between the Japanese and US central banks has escalated, the yen has stopped falling for five consecutive years, but the technical aspect lacks bullish confidence." Hope this helps you! The original content is as follows:
During the Asian market on Friday (February 6), the Japanese yen attracted some buyers. It seems to have stopped the rise of the US dollar against the yen for five consecutive trading days. The previous day, the US dollar against the yen had hit a two-week high (157.33). The US dollar against the yen is currently trading around 156.60, with an intraday decline of about 0.25%. Traders are highly alert to signs that Japan and the United States may jointly intervene to prevent the yen from depreciating. This expectation, coupled with a shift in global risk sentiment and increased market volatility, have jointly boosted the safe-haven properties of the yen. In addition, the market's hawkish expectations for the Bank of Japan have also become another key factor supporting the yen. However, technical bearish pressure on the yen remains.
At the same time, data released on Friday morning showed that Japan's household spending fell sharply in December, highlighting the suppression of consumer activity by rising prices and further strengthening market expectations that the Bank of Japan will raise interest rates ahead of schedule. However, growing concerns about Japan's fiscal health and political uncertainty may curb aggressive bets by yen bulls. In addition, the U.S. dollar's recent rebound from four-year lows may limit the U.S. dollar's downside against the yen before the snap election of the Japanese House of Representatives on February 8.
The yen benefited from the Bank of Japan's hawkish expectations and the shift in risk sentiment
Data released early on Friday showed that Japan's household expenditure fell by 2.6% year-on-year in December 2025, a sharp contraction from the 2.9% increase in the previous month. This shows that high living costs are suppressing consumption, further strengthening the Bank of Japan's determination to fight inflation and providing a basis for raising interest rates early.
In fact, the summary of the opinions of the Bank of Japan’s January meeting released earlier this weekTo show, policymakers discussed rising price pressures from a weak yen. In addition, www.xmtraders.committee members believed that further interest rate hikes were appropriate at the right time, which helped the yen gain some momentum.
Asian stocks fell for a second straight day as a global sell-off in technology stocks deepened losses on Wall Street, also boosting the safe-haven yen. On the other hand, the U.S. dollar is consolidating after recently rising to a two-week high (98.03), prompting traders to reduce their long USD/JPY positions ahead of Japan’s February 8 snap election for the House of Representatives.
Japanese Prime Minister Takaichi Sanae's Liberal Democratic Party seems poised to win a resounding victory, which will give Takaichi Sanae a firmer grip on Congress and provide more room for a more robust implementation of its stimulus-oriented macroeconomic policies. The market appears concerned that the expansionary fiscal plan could severely damage Japan's already strained public finances.
In the United States, the Labor Department reported on Thursday that the number of initial jobless claims rose to 231,000 in the week ended January 31 from 209,000 the previous week. This data was not only higher than the expected value of 212,000, but also sent another weak signal following Wednesday's bleak private sector employment data.
In addition, the Job Vacancies and Labor Turnover Survey showed that the number of job vacancies on the last working day of December was 6.542 million, down from the downwardly revised 6.928 million in the previous month. That points to a weakening labor market and strengthens the case for further rate cuts by the Fed.
In fact, traders are currently betting that the Federal Reserve may cut interest rates two more times in 2026, which in turn has curbed the dollar's rebound momentum and prompted a slight correction in the dollar against the yen.
Traders are now paying attention to the release of the University of Michigan's consumer confidence index and preliminary inflation expectations. These data, together with speeches by important Federal Reserve officials, will affect the trend of the US dollar and USD/JPY later on Friday. However, the market reaction may be relatively muted before key political events in Japan.
USD/JPY bulls have the upper hand after breaking above the 200-period moving average resistance on the four-hour chart
The overnight break above the 156.59 resistance level (i.e. the 200-period moving average on the four-hour chart) is seen as a key catalyst for the USD/JPY bulls. The steady upward trend of this moving average has laid a solid tone for the overall trend, and the continued maintenance of the current exchange rate above this moving average further consolidates the bullish tendency.
The moving average convergence divergence indicator (MACD) histogram turned negative and began to expand, causing the indicator line to slip below the signal line near the zero axis, suggesting that the upward momentum is weakening. The relative strength index (RSI) is above its midline and has retreated from the previous overbought reading, reinforcing the signal that the market is slowing down.
If it can remain above the rising 200-period moving average, the exchange rate will continue to move upward along the path of least resistance; conversely, if it continues to fall below the moving average support, it may start a callback phase. Observed from the kinetic indicator, further expansion of the MACD negative histogram will intensify the downward pressure, and if the indicator can quickly return to above the zero axis, the bearish signal of this dead cross will be resolved.. The RSI holding above the 50 line will maintain the bullish bias, while a pullback towards the 50 level will indicate fading buying demand.
The above content is all about "[XM Group]: The policy duel between the Japanese and US central banks escalates, the yen stops falling for five consecutive years, but the technical aspect lacks bullish confidence". It is carefully www.xmtraders.compiled and edited by the XM foreign exchange editor. I hope it will be helpful to your trading! Thanks for the support!
Every successful person has a beginning. Only by having the courage to start can you find the way to success. Read the next article now!
Disclaimers: XM Group only provides execution services and access permissions for online trading platforms, and allows individuals to view and/or use the website or the content provided on the website, but has no intention of making any changes or extensions, nor will it change or extend its services and access permissions. All access and usage permissions will be subject to the following terms and conditions: (i) Terms and conditions; (ii) Risk warning; And (iii) a complete disclaimer. Please note that all information provided on the website is for general informational purposes only. In addition, the content of all XM online trading platforms does not constitute, and cannot be used for any unauthorized financial market trading invitations and/or invitations. Financial market transactions pose significant risks to your investment capital.
All materials published on online trading platforms are only intended for educational/informational purposes and do not include or should be considered for financial, investment tax, or trading related consulting and advice, or transaction price records, or any financial product or non invitation related trading offers or invitations.
All content provided by XM and third-party suppliers on this website, including opinions, news, research, analysis, prices, other information, and third-party website links, remains unchanged and is provided as general market commentary rather than investment advice. All materials published on online trading platforms are only for educational/informational purposes and do not include or should be considered as applicable to financial, investment tax, or trading related advice and recommendations, or transaction price records, or any financial product or non invitation related financial offers or invitations. Please ensure that you have read and fully understood the information on XM's non independent investment research tips and risk warnings. For more details, please click here