There is growing speculation that the Bank of Japan (BoJ) may make adjustments to its yield curve control (YCC) policy at its July 28 meeting, which has contributed to recent gains in the Japanese yen. The speculation stems from Japan's Monthly Labor Survey for May, which confirmed accelerated wage growth, and comments made by BOJ Deputy Governor Shinichi Uchida that were interpreted by some as signaling imminent policy tweaks. We will see.
The USDJPY has moved sharply lower and reached a swing area between 140.22 and 140.452. The price has bounced back higher, trading above that area. Will the buyers start to lean against it? On the top side it would take a move above the broken 61.8% retracement of the move up from the June 1 low. A level comes at 140.959 (call it 141.00).
