USDJPY:
USD/JPY is trading near multi-month highs, reflecting the wide yield gap between the US and Japan. With the Bank of Japan cautious about raising rates and maintaining sizable support programs, the policy divergence remains the main source of pressure on the yen and supports further gains in the pair.
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Local Tokyo data point to faster inflation, which intensifies the debate about the BoJ’s next steps, but it does not change the short-term balance of forces yet. Demand for the dollar is additionally fueled by the upcoming US labor-market and activity indicators, which investors use to reassess the Fed’s easing path.
The key risk to long positions is potential verbal signals or actions by Japan’s Ministry of Finance if yen weakness accelerates. For now, the rate-differential driver dominates, and a moderately firm dollar supports a move toward 155.00, assuming prudent risk control and readiness to react to any intervention headlines.
Trading recommendation: BUY 154.05, SL 153.55, TP 155.00
Origin: FreshForex
