The USD/JPY macro perspective trades in favor of the yen which occurs for about 5 Years. The rate found support around the lower macro extreme of a previous balanced price range with an ongoing reversal while the bearish trend is still intact. Also, to be noted is the current downside momentum towards the Quarterly DVAL which could serve as a support level while the rate is contracted on a daily basis.

Yen. Image Source: Pixabay

Yen continues to benefit from his safer appeal amid worries and as the Japanese economy grew faster-than-expected in Q2. Taro Kono, the minister of administrative affairs, formally announced his candidacy to lead the ruling Liberal Democratic Party (LDP) and become the next prime minister.

Yoshihide Suga recently quit his party’s leadership. Machinery Orders MoM rose by 0.9% which might boost the yen additionally. Inflation forecasts for YoY to the upside while a move in favor of the currency might defend higher prices.