Bessent Urges BOJ Governor to Take Decisive Steps Against Weak Yen

GOOGL shares have lost 1.6% over the past 24 hours, with the RSI at 34.9, nearing oversold conditions. The MACD is in negative territory and below the signal line, indicating weak short-term momentum. The price is trading below both the 20-day and 50-day moving averages, which paints a bearish technical picture. Although the news headline does not directly impact GOOGL, a weak yen and global monetary policy uncertainty could dampen risk appetite. Therefore, the likelihood of a continued downtrend in the short term is high.

The news that the US Treasury Secretary has called on the BOJ to intervene against the weak yen could increase expectations of yen appreciation in the market. Technically, the RSI at 56 is in neutral territory, while the MACD is above its signal line and positive, supporting short-term upward momentum. The price is above the SMA20 but just below the SMA50, indicating proximity to a resistance level. Combining the news flow and technical outlook, the probability of JPY gaining value in the short term is moderate. However, the gap between intervention rhetoric and actual action keeps confidence limited.

The news headline indicates that the US Treasury Secretary has called on the BOJ to take decisive action regarding the weak yen, which could create pressure for yen appreciation. However, technical indicators show the RSI approaching overbought territory at 61, and the price is above the SMA20 and SMA50, suggesting that upward momentum may continue in the short term. The MACD is above the signal line and positive, supporting a bullish outlook. Nevertheless, the impact of the news may be limited, as the BOJ is not expected to make any concrete policy changes; therefore, the strength of the upward move is moderate. In the short term, USDJPY is more likely to move slightly higher, with the 160.50 resistance potentially being tested.

The news highlights that the weak yen needs support from the Bank of Japan (BOJ), which could strengthen expectations of an interest rate hike in Japan and put pressure on the Nikkei. Technical indicators also signal a sell-off: RSI is in the weak zone at 33, MACD is negative, and the price is below both the 20-day and 50-day moving averages. A 3% decline over the last 24 hours indicates negative short-term momentum. However, as the market approaches oversold territory, bargain buying may emerge, so the confidence level is kept moderate. Overall, the downward movement is more likely to continue over a 1-3 day perspective.