USD/JPY Forecast. Forex Fundamental Analysis | 16 May – ForexNews.PRO
USDJPY:
The Japanese Yen (JPY) traded with a positive bias against its US counterpart for the third consecutive day on Thursday and so far appears to have halted a late pullback from the previous day’s weekly high. Japan’s wholesale inflation data released on Wednesday showed that companies continue to pass on costs to consumers, adding to fears of further price increases in Japan. The Bank of Japan (BoJ) is expected to continue raising interest rates, which in turn is expected to support the Yen.
In addition, a slight deterioration in global risk sentiment – as evidenced by a softer tone in equity markets – is another factor that favors the safe-haven yen. This, along with a modest decline in the US dollar, is pushing the USD/JPY pair towards 146.00 during the Asian session. Meanwhile, optimism from the 90-day tariff truce between the US and China could put pressure on the yen. In addition, lower bets on a more aggressive easing policy from the Federal Reserve (Fed) could support the dollar and the currency pair.
Trading recommendation: SELL 146.10, SL 146.70, TP 144.80
Origin: FreshForex
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