Dollar Rebounds Against Yen as BoJ Concerns Offset US Payroll Contraction
The US Dollar rebounded against the Japanese Yen on Monday, climbing back above 158.00 after hitting a low of 156.68 on Friday.
The bounce was attributed to a summary of opinions from the Bank of Japan (BoJ), which revealed concerns about mounting inflation and a split committee regarding the pace of upcoming rate hikes. This weighed on investor confidence in the Yen, while the US Dollar's decline due to an unexpected contraction in US Nonfarm Payrolls had already lost steam.
The technical analysis indicates that the USD/JPY pair is trading within an ascending channel from August 3 lows at 155.23. Momentum indicators suggest a stabilizing upside momentum within this short-term uptrend, with bulls aiming to test the channel top around 159.25 and potentially even reach the area between the 61.8% Fibonacci retracement at 160.64 and the July 31 highs near 160.90.