Yen rebounds as traders eye key data and central bank moves

After a sharp sell-off earlier in the week, the Japanese yen (JPY) rebounded on Thursday, buoyed by bargain hunting and anticipation of key economic data. The market is now focused on Tokyo inflation figures and global PMI data, both of which could influence the Bank of Japan's next policy steps and impact major currency pairs, particularly USD/JPY.

Geopolitical impact: The BoJ’s struggle to hit its inflation target adds uncertainty to the Yen’s trajectory. Meanwhile, the Bank of Canada’s surprise rate cut has sent ripples through the USD/CAD pair, intensifying market volatility.

USD/JPY technical outlook: The pair is trading around $152, facing resistance near $152.51 as the RSI signals overbought conditions. Support is seen at $148.80, with a possible retest of the 100-day moving average. Expect heightened volatility as traders digest upcoming PMI and US labour data.

Read the full article here: https://www.fxstreet.com/analysis/yen-rebounds-amid-key-global-data-and-central-bank-moves-202410241445