USD/JPY Analysis: Rate Reaches Maximum of the Year

<img src="https://fxopen.com/blog/en/content/images/2023/09/Yes_and_Dollar__1_.jpg" alt="USD/JPY Analysis: Rate Reaches Maximum of the Year" /><p>This morning, the Bank of Japan&apos;s decision on the interest rate, which has been kept at -0.1% since 2016, became known. The rate size remained unchanged.</p><p>Although surprises could occur due to the fact that inflation is still above the central bank&apos;s target of 2% for the 17th month in a row. So a tightening of policy is becoming more and more likely. CNBC writes that the Bank of Japan may be prompted to take this step by the weakness of the national currency.<br></p><figure><img src="https://lh6.googleusercontent.com/Z_hSAP2iKZi6y4742UlrBuDQnWgQD4E2TcmVFKPp4SoI4RNzYHYihtjz-7TPWp616GVENKYc–OGDYHc6VYwBVAg0ergfb1xp4BZOz9C5uNmoaDw8X3dUKmTE7r7gcTVSJE44v5-rp1iBKWMxu7fUMA" alt="USD/JPY Analysis: Rate Reaches Maximum of the Year" loading="lazy" /></figure><p>This morning, as the chart shows, the rate has risen very close to the highs of the year. It is possible that it will be updated during the day today.</p><p>Bullish arguments:</p><ul><li> The continuing difference in the monetary policies of the United States and Japan contributes to the growth of the exchange rate even higher.</li><li> The border of the current bullish channel has not been reached, the potential for growth remains.</li><li>Rising lows this week indicate stronger demand.</li><li>Even if the yen strengthens, the trend can be supported by both the median and the lower border of the ascending channel.<br></li></ul><p>Bearish arguments:</p><ul><li> Market participants&apos; fear of intervention by the Japanese authorities around the level of 150 yen per US dollar, which is considered critical, may weaken the upward trend.</li><li>If the US dollar index, which rose close to the highs of the year, rolls back, this will strengthen the yen.</li></ul>