USD/JPY Price Forecast: 20-day acts key barrier near 156.45
The Japanese Yen (JPY) outperforms its major currency peers on Thursday, with the USD/JPY trading 0.28% lower to near 155.80.
The Japanese Yen (JPY) has been outperforming its major currency peers on Thursday, with the USD/JPY pair trading 0.28% lower to near 155.80. Analysts at Danske Bank predict that the Bank of Japan (BoJ) will maintain its monetary tightening stance even after the recent interest rate hike of 25 basis points (bps) to 1.25% on Friday.
Danske Bank believes the BoJ will raise its policy rate to 1.25%, as market pricing has tightened significantly during recent weeks and Governor Ueda is not expected to push against this move. However, the analysts anticipate a shift in the communication surrounding the policy path, expecting the BoJ to adopt a more nimble approach to the tightening pace than the cautious hiking cycle witnessed so far.
The USD/JPY pair is currently trading at 155.83, holding below the 20-day exponential moving average (EMA) at 156.46, indicating a bearish near-term bias. The 20-day EMA at 156.46 serves as the primary resistance level, while the September 8 low at 152.89 acts as the key support level.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
