USD/JPY Price Forecast: Fresh downside leg expected below 155.00
The Japanese Yen (JPY) trades flat against the US Dollar (USD) at around 156.00 at the start of the week, but is close to its four-month low of 155.23.
The Japanese Yen (JPY) is trading near its four-month low of 155.23 against the US Dollar (USD), with the pair currently sitting at 156.00 at the start of the week. This decline is primarily attributed to hawkish commentary from Bank of Japan's (BoJ) board member Hajime Takata, who suggested a possible interest rate increase. Analysts at MUFG noted a significant move in the FX market, with the Japanese yen strengthening sharply from the 160 level all the way down to 155.30.
MUFG ruled out the possibility of BoJ intervention, attributing the moves to broader Dollar weakness and regional FX gains. Investors are now eagerly awaiting the August US Consumer Price Index (CPI) data, which will provide insight into Federal Reserve (Fed) interest rate expectations. In the daily chart, USD/JPY is trading at 155.95, maintaining a bearish near-term bias as it holds below the 100-day Simple Moving Average (SMA) at 159.92.
The key support level for USD/JPY is the four-month low at 155.25, and a break below this could signal a fresh downside leg.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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