Japanese Yen Gains Upper Hand Against Greenback

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Japanese Yen Gains Upper Hand Against Greenback

Japanese Yen (JPY) Gains Upper Hand Against Greenback

Japanese Yen (JPY) has finally flipped the trend of greenback appreciation by gaining ground during Friday's session. If the JPY appreciation continues, the USD/JPY may end the week in a loss.

During Friday's session, the USD/JPY touched 149.45 level, which is also a daily low. However, the pair has now moved a little higher, near 149.60; it is still in the red for the day.

The appreciation of Yen (JPY) isn't just limited to the greenback, though. The JPY is gaining ground with most other currencies, such as the EUR and the GBP as well.

Rumors Of BoJ Rate Hike

The sudden strength of the JPY is due to the forecasts that the BOJ will change its policy of negative interest rates and introduce a rate hike at the next meeting. At the core of this forecast is the release of Japan's inflation data, which is rising.

Despite the recent weakness in the USD/JPY, we can't ignore the fact that it is dangerously close to the 150.00. It is the same level that many market players see as the catalyst for market intervention. Earlier, the MoF stepped in when the USD/JPY touched 151.93 & pushed it lower.

Technically, the uptrend in the USD/JPY is still intact despite the decline seen during Friday's session. Whether we look at the short-term, medium-term, or long-term, the forecast remains BUY, which is a sign of greenback strength.

According to experts, the USD/JPY has not done enough to signal a complete change in the trend. The pair will need to show sustainable bearish pressure to signal a major change in the trend.

That's why the bigger picture is still the same - The USD/JPY will continue unless a major change occurs on the fundamental side.

If we look back, the USD/JPY has already completed a bullish breakout from an ascending triangle. This means the pair is now en route toward the 152 level.

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