USD/JPY Jumps to Mid-148s as Yen Weakens and Dollar Stays Strong
The USD/JPY pair moved higher on Thursday, trading around the 148.50 level. The Japanese yen dropped again after Japan posted a weaker-than-expected trade surplus for June. Exports slowed while imports rose, showing signs of weak economic activity and low inflation.
This has reduced hopes for any interest rate hikes from the Bank of Japan (BoJ) in the near future. Political uncertainty, slow wage growth, and global trade concerns are also adding pressure on the yen outlook.
On the other hand, the U.S. dollar is gaining strength. Traders are buying more dollars as they expect the Federal Reserve to keep interest rates higher for longer. This strong dollar demand is helping the USD/JPY forecast move toward the 149.00 level.
From a technical view, the pair looks bullish and may continue rising. Traders are watching upcoming U.S. economic data like retail sales, jobless claims, and the Producer Price Index (PPI). These reports will give more clues about the Fed’s next move. In Japan, traders are waiting for the CPI data and the July 20 Upper House election, which could bring more movement in the market.
Impact:
USD/JPY might climb further if U.S. data remains strong or if the yen stays weak. A surprise in Japan’s CPI or BoJ action could slow the rally.