rose to 157.65 on Wednesday, marking a third consecutive day of gains. The yen came under pressure following better-than-expected US inflation data, reinforcing expectations that the Federal Reserve will maintain its hawkish stance.
The market's attention remains focused on the Bank of Japan. Following their April meeting, some authorities signaled the possibility of a further rate hike. The increases add to inflationary pressures in Japan. The OECD forecasts that the BoJ's key rate could reach 2% by the end of 2027.
Currency markets are also watching for possible interventions. US Treasury Secretary Scott Bessent noted that Washington and Tokyo view excessive monetary volatility as undesirable, which was seen as indirectly supporting Japan's efforts to stabilize the yen.
Technical analysis
According to the H4 chart, USD/JPY is trading around 157.33, and a break suggests further upside towards 157.97. A short-term correction to 156.50 is possible before a potential bullish move resumes. The MACD indicator, above zero and pointing firmly upwards, supports further gains.
On the first half chart, USD/JPY has reached 157.77 and is declining towards 157.30. A further rise towards 157.97 is possible. The stochastic oscillator confirms short-term bullish momentum, although a pullback may develop, indicating some short-term downside risk.
Conclusion
USD/JPY is advancing under both external and internal influences, supported by technical indicators. While short-term corrections are possible, the broader trend remains bullish.
By RoboForex Analysis Department
Disclaimer: Any forecast contained herein is based on the author's personal opinion. This analysis cannot be considered trading advice. RoboForex assumes no responsibility for trading results based on the trading recommendations and reviews contained herein.
