USD/JPY recovered from a 156.08 low on Oct. 23 as investors sought safer assets and Japan’s latest inflation reading kept the Bank of Japan’s policy outlook in focus. FXStreet reported the pair at 156.85 at 7:25 p.m. ET (23:25:30 UTC); the Bank of Japan’s daily report recorded a 156.08–157.16 range.
Reuters linked demand for the yen to risk aversion, including a sell-off in AI-related stocks. Lee Hardman, senior currency analyst at MUFG, said risk-off trading had supported the Japanese currency. MUFG also reported that USD/JPY rebounded from its overnight low as Asian equity markets recovered.
The Statistics Bureau of Japan said September consumer prices excluding fresh food rose 2.1% from a year earlier. The measure excluding fresh food and energy increased 2.4%. Reuters reported that the core inflation rate had moved above the Bank of Japan’s 2% target for the first time in nine months.
FXStreet’s chart analysis described the day’s candle as a hammer, a pattern the outlet said could indicate rebound risk. It also said the 14-day Relative Strength Index remained below 50, leaving its technical outlook bearish. FXStreet analyst Christian Borjon Valencia wrote that “the path of least resistance is downwards.” The outlet identified support at 156.50, then 156.08 and 155.00, and resistance at the 50-day simple moving average of 157.57.
The yen’s latest move followed Thursday’s USD/JPY low and partial recovery, which FXStreet also reported. The Federal Reserve’s meeting is scheduled for Oct. 27–28, followed by the Bank of Japan’s policy meeting on Oct. 29–30.
