The Yen currency depreciated significantly in the Asian session just now as the decision of the last policy meeting of the central bank of Japan for 2023 has been answered.
Like other central banks last week, the Bank of Japan (BOJ) also kept its interest rate unchanged at -0.10% and the 10-year Japanese government bond yield remained at 0%.
The outlook for monetary policy that remains dovish has given the yen an early reaction to the weakening of the yen as markets await a speech by governor Kazuo Ueda for the latest guidance.
A Reuters poll found that 80% of economists expect the BOJ to say 'goodbye' to its loose monetary policy by the end of 2024, with a minority expecting that situation to happen as early as January.
Observing the price reaction on the chart of the USD/JPY currency pair, the price has shown a surge following the ongoing BOJ meeting which saw the price climb up to the 143,700 level.
If judged, the price is likely to continue the bullish pattern after signaling a change in direction earlier on Monday yesterday with the price movement already above the Moving Average 50 (MA50) support line on the 1-hour time frame of the chart.
At the beginning of the Asian session this morning, the price also tested the MA50 support before the surge was finally shown.
The price increase if continued is seen to return to the concentration zone between the range of 146.00 to 147.00.
The move higher is projecting a more clear bullish trend move for the price to end the bearish streak after 5 consecutive weeks.
However, if the increase that occurred at the beginning of this week is just a price retracement, the decline can happen again if there are signs of a weak price increase.
The decline will test the level reached last week around 141.00 before extending lower at the target around 139.300.
