USD/JPY Price Forecast: Signs of stabilization above 20-day EMA back more upside
The Japanese Yen (JPY) underperforms its major currency peers at the start of the week, with the USD/JPY pair trading 0.1% higher to near 157.00 in the early European trade. The Japanese currency has come under pressure after the Bank of Japan’s (BoJ) monetary policy announcement on Friday.
The Japanese Yen (JPY) has shown signs of stabilization above the 20-day Exponential Moving Average (EMA) at 156.56, leading to more upside potential for the USD/JPY pair. This comes after the Bank of Japan (BoJ) raised interest rates by 25 basis points to 1.25%, the highest level seen in 31 years. While two BoJ board members opposed the decision, the central bank kept the door open for further hikes and warned that inflation might exceed its 2% target.
Meanwhile, investors await further guidance on the Bank of Japan's interest rate policy moves without causing economic harm. The USD/JPY pair has been hovering around 157.06, with the 20-day EMA acting as immediate support. A break below this level could expose a deeper retracement towards the September 17 low at 155.34. If the pair manages to break above Friday's high near 158.00, it could rise towards the September 2 high at 160.39.
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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