USD/JPY Back below 158.00, Core Machine Orders Shortly

USD/JPY ended Friday trading up 0.24% at 157.40 after the BoJ kept rates unchanged, leading to a weaker Yen. The pair saw gains driven by risk aversion and a hawkish hold by the US Fed earlier in the week. The USD/JPY stabilized around 157.36, recovering from intraday lows and reflecting a positive market sentiment towards the Greenback.

• The USD/JPY climbed past 157.00 and tested the 158.00 resistance but failed to maintain its gains above this level. Immediate resistance remains at 158.25 (Jun 14 high), followed by 158.48 (1.00 proj of the May 3 - 14 - 16 price swing), with support at 156.60 (20-day EMA) and 155.72 (June 12 low).
• The pair's bullish momentum is underscored by the RSI at 58 has held steady recently, though it indicates a potential loss of steam. The Ichimoku Cloud low at 153.35/40 serves as a significant support level if the pair moves downward.
• S&P view the current weakness in the yen as temporary and do not expected it to negatively impact Japan's sovereign credit rating in the near future, with any potential rate hikes by the BoJ being assessed based on their effect on economic growth, as per BBG.
• Today, the USD/JPY has ticked slightly higher and now trades around 157.50, largely reflecting wider moves in the USD, the pair trades well within Friday ranges of 157.00-158.25. Up soon we have Core Machine Orders For April.
• Expiries: 150.00 ($3.12b), 157.50 ($770.9m), 95.99 ($763m). Upcoming notable strikes: 135.50 ($1.97b June 20), 154.00 ($1.95b June 18), 157.00 ($1.8b June 20)

Investors will watch for upcoming Japanese trade and inflation data, which may impact future movements. The BoJ’s detailed plan for bond purchases, expected in July, and the ongoing US economic data will also influence the USD/JPY pair in the coming days.