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USD/JPY Analysis Today 15/5: Uptrend Could Persist (Chart)

The Japanese yen continued to fall, reaching over 156 yen to the dollar, marking its lowest level in two weeks. This has raised concerns about potential intervention by Japanese authorities to support the currency.

Japanese Finance Minister Shunichi Suzuki stated that the government is working with the Bank of Japan to ensure consistent policy goals regarding foreign exchange. They are closely monitoring yen movements and taking all necessary measures in this regard.

Earlier this month, the yen saw a sharp rise after dropping to 160 yen to the US dollar due to suspected government interference. However, it has since given back about two-thirds of those gains as investors take advantage of the interest rate differential between Japan and other major economies.

The USD/JPY exchange rate has been on an uptrend, nearing its highest level since May 1st. Investors are focusing on upcoming US inflation data, with economists predicting stubbornly high inflation rates for April. If accurate, this would mean inflation remains above the US Federal Reserve’s target of 2%.

The US dollar/Japanese yen exchange rate will also be influenced by Japanese GDP numbers expected to show a contraction in the economy. This could put more pressure on the Bank of Japan as it deals with a weak yen.

Technical analysis shows that the USD/JPY exchange rate is on a strong upward trend, indicating unsuccessful interventions in the Japanese currency. The outlook remains bullish, with the next target at resistance 160.25.

Overall, the USD/JPY exchange rate is expected to be influenced by US inflation data and Japanese GDP numbers in the coming days.

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