USDJPY Headed for 150 As Japan PM Requests No Rate Hikes by BOJ

USDJPY showed strong buying pressure as the new Prime Minister of Japan has rejected further rate cuts by the Bank of Japan. This forex pair has claimed almost half the losses from the major decline in summer and now buyers are trying to push above the 150 level, which would bring the uptrend back on.

The USD/JPY ended last week at 149 after briefly rising above this level earlier in the week, gaining a total of 7 cents. Initially, the 100-day Simple Moving Average (SMA), positioned around 149.40, acted as a resistance point, preventing further upward movement. However, the price soon rebounded above 149 and tested the 100 SMA again, suggesting strong buying pressure, though the decline was short-lived. If the pair breaks above this moving average, it could target the 150 mark, signaling an official trend reversal.

USD/JPY Chart Daily – Sticking to the 100 SMA

The USD/JPY’s recent gains have been driven by the USD’s strength, bolstered by renewed buying interest following Japanese Prime Minister Ishiba’s influence on the Yen. Ishiba has diverged from the Bank of Japan’s earlier recommendations for potential rate hikes, contributing to the current USD/JPY rally. Although his recent comments were somewhat mixed, they still supported his stance, which has negative implications for the Yen.

USD/JPY Live Chart