USD/JPY- USD/JPY is Extending Gains in the Wake of US Inflation Report

Buy Signal

• Stop Loss: 131.06
• Take Profit: 132.23

The USD/JPY is currently close to reaching its peak for the day at 132.00 in the Tokyo market. Analysts predict that the value of the asset will increase to surpass 132.00, reaching a four-day high, due to the caution exercised by investors in anticipation of the upcoming report on inflation in the United States and possible threats to the nation’s territory.

Fears of another interest rate hike by the Federal Reserve have intensified, causing unease among investors about a potential increase in US inflation. MUFG economists believe that the US Dollar will receive support from a robust inflation report. The appeal of the US Dollar has been boosted by a rise in used car prices, as indicated by a 2.5% increase in average used-vehicle prices reported by Manheim for January, according to Bloomberg.

On the other hand, the Japanese Yen has given up its gains after Kazuo Ueda, an academic, was announced as the next governor of the Bank of Japan (BoJ) following Haruhiko Kuroda’s departure in April. Ueda has stated that the current monetary policy is sufficient, leading to a decrease in the value of the Japanese Yen as the government has repeatedly emphasized their intention to end the ultra-dovish monetary policy.

Forex Forecast

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