USD/JPY Eyes 155 Breach as BoJ-Sparked Downtrend Gathers Momentum

USD/JPY News

USD/JPY Eyes 155 Breach as BoJ-Sparked Downtrend Gathers Momentum
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Forex Analysis by Investing.com (Damian Nowiszewski) covering: USD/JPY. Read Investing.com (Damian Nowiszewski)'s latest article on Investing.com

Ahead of the Bank of Japan's next meeting at the end of the month, the USD/JPY pair is in a downtrend.currency pair has been in a correction phase, likely influenced by potential currency interventions from the Japanese government. Historically, without coordination between the government and the Bank of Japan , persistent downward pressure on the yen tends to continue.

Despite this, the fundamental situation remains unfavorable for the yen, particularly due to the significant interest rate differential between the U.S. and Japan. The BoJ's upcoming meeting could address this gap, but decisive action seems unlikely given the ongoing weakness inremains under pressure as markets anticipate a potential policy shift by the Federal Reserve in September.

If sellers break through the 155 yen support, the next target is the 152 yen level. This area, where strong demand emerged in early May, may offer additional opportunities to join the downward trend at more favorable prices.

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