Will USDJPY be on a downward trend?

2023年9月26日

The USD/JPY exchange rate is consolidating its recent rise to 149.00, the highest in the last 11 months, supported by the increase in US Treasury yields due to the determined stance of the Federal Reserve. However, there is a risk of Japanese intervention in the foreign exchange market. USD/JPY has recovered the losses caused by the Bank of Japan's decision to maintain rates at -0.1%. BoJ Governor Kazuo Ueda has indicated the possibility of changing the interest rate policy when nearing the 2% inflation target. The US Dollar Index (DXY) is trading higher around 105.40, influenced by strong long-term US Treasury yields, the highest since 2007. Investors are monitoring economic data, such as the US PMIs for September, to assess trading opportunities. The latest US economic data presents a mixed picture. The Federal Reserve confirmed rates in the range of 5.25-5.50% and reiterated its commitment to achieving a 2% inflation target, with the possibility of rate hikes if necessary. The price has broken a significant swing high at the 148.85 level, giving an initial signal to consider a short entry. Let me know what you think, comment, and leave a like. Greetings and happy trading from Nicola, the CEO of Forex48 Trading Academy.