The US dollar continues to see supportive action against the Japanese yen, although it is worth noting that the Bank of Japan has an interest rate meeting on Friday, so we are not in the “all clear” quite yet with this potential recovery in what is an oversold market.

The USD/JPY dropped after reaching a four-day high of 142.47, yet it remains range-bound during the North American session. The rise in US Treasury yields and a soft US Dollar keeps the pair trapped within the September 17 trading range. Therefore, the major trades at 141.88, losses 0.36%

The USD/JPY exchange rate continued its downward trend ahead of the upcoming Bank of Japan (BoJ) and Federal Reserve interest rate decisions. The pair retreated to a low of 141.50 on Wednesday morning,

In the early hours of Friday, we have seen the US dollar falling yet again against the Japanese yen as it looks like the carry trade unwinding continues to be a major feature of the trading markets around the world.

If USD/JPY climbs above the September 12 daily high of 143.04, this could pave the way for a leg-up, exposing key resistance levels: the Senkou Span A at 143.15, followed by the Kijun-Sen at 144.48.