USDJPY:
The yen remains under pressure following political changes in Japan: the election of the new ruling-party leader has reinforced expectations of fiscal support, which in the market’s view pushes back the likelihood of a near-term policy tightening by the Bank of Japan. Rising US yields alongside steady dollar demand widen the interest-rate differential and support the pair.
Market commentaries note that the exchange rate holds near 153, and the yen has weakened for several sessions in a row. The external backdrop—nervousness in Europe and confidence in the dollar—adds momentum to the upward move in USDJPY. While the risk of official statements from Japanese authorities on the exchange rate remains, the current news flow keeps the advantage with the dollar.
Fresh quote feeds show a 152.8–153.3 range during the European session. Given the combination of factors—yield differentials and expectations for domestic policy in Japan—we keep a trend-following buy from 152.95 with a protective stop at 151.95 and a 153.95 target.
Trading recommendation: BUY 152.95, SL 151.95, TP 153.95
Origin: FreshForex
