#USDJPY $USDJPY Rise after Monetary Policy Divergence...

The USD/JPY continiues to produce.

Latest:

The USDJPY has seen an increase over the last three days due to several factors:

Monetary Policy Divergence:
The Bank of Japan (BoJ) decided to maintain its interest rates, reflecting a dovish stance in contrast to the U.S. Federal Reserve's more hawkish approach. This divergence in monetary policy tends to strengthen the U.S. Dollar against the Yen since investors can borrow Yen at low rates to invest in higher-yielding U.S. assets.

FOMC Meeting Impact:
The recent FOMC meeting indicated a slower pace of rate cuts for 2025, which typically supports a stronger U.S. Dollar. This hawkish cut by the Fed, alongside the BoJ's inaction, contributed to the USDJPY's upward movement.

Market Reactions and Technical Levels:
Following the FOMC and BoJ announcements, there was an immediate market reaction. The USDJPY broke higher post-BoJ press conference, indicating a breakout possibly influenced by both the Fed and BoJ decisions. Technical analysis suggests that if the pair maintains above certain levels, like 157, it could aim for higher extensions, showing strong market sentiment towards further appreciation of the USD against JPY. Although a pullback at this level would be healty.

Speculation on Future Interventions:
There's an anticipation that the Japanese Ministry of Finance might intervene at around the 160 level to protect the Yen, but historical interventions have been less effective, suggesting that the USDJPY could continue to rise if these levels are approached (Taking a look at the upper line yellow line at the chart, if this is tested, broaken and holds we could see a great incerease).

My target would be at 160- 165 lvl for now if it holds its current price or finds support in event of an pullback at a key level.

However always keep in mind, currency movements are also influenced by broader market sentiment, geopolitical events, and other economic indicators. This is not financial advice.