USD/JPY Forecast – US Dollar Attempting to Return to Uptrend

The US Dollar has been experiencing volatility against the Japanese Yen in the past 24 hours due to a major shock in the CPI numbers on Thursday. The Japanese government intervened in the market, but history shows that such interventions typically fail. Buyers have since stepped in to support the US Dollar, especially after the PPI numbers came in higher than expected. The focus now shifts to whether the Bank of Japan will defend the yen, which they likely will to some extent. However, their actions are usually aimed at slowing down the currency pair’s momentum rather than reversing it entirely. The 50-day EMA and the ¥158 level have provided significant support, with the latter previously acting as resistance.