USD/JPY Weakens Amid BoJ's Cautious Outlook

In the European session on Thursday, the USD/JPY pair continued to experience a period of weakness. The subdued outlook from the Bank of Japan (BoJ), with predictions of continued monetary policy easing in the near future, coupled with inflationary risks, are the primary factors contributing to the weakening of the Japanese yen. This suggests that despite speculations of intervention from the Japanese government to support the domestic currency, speculators have still been unable to significantly diminish the value of the JPY.

From a technical analysis standpoint, the price surpassing the simple moving averages (SMA) indicates a positive signal for further upward movement. The Relative Strength Index (RSI) has also exceeded the average level, further affirming the upward trend of this currency pair. Should the price surpass the 152.00 threshold, we can anticipate a strong continuation of the USD/JPY upward trend.