USDJPY:

USD/JPY is holding near 157.65–157.70, as the US dollar is supported by accelerating inflation, rising Treasury yields, and worsening global risk appetite. After the April consumer price report, market participants are more cautious in assessing the probability of Fed policy easing, which preserves the dollar’s appeal.
The yen is receiving temporary support from discussions about possible action by Japanese authorities against excessive volatility. Statements by the US and Japanese finance ministries about the undesirability of sharp movements in the currency market are limiting the pair’s growth, but so far they have not changed the overall balance of factors. The yield gap between the United States and Japan remains significant, while demand for the dollar is helping USD/JPY stay at elevated levels.
The baseline scenario for today suggests a cautious continuation of USD/JPY growth if US statistics confirm persistent inflation and US yields remain high. At the same time, position size should be controlled due to the risk of sharp comments or actions from Japanese authorities. Given the current fundamental backdrop, preference remains with buying from nearby market levels.
Trading recommendation: BUY 157.65, SL 157.45, TP 158.55
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