USD/JPY rises towards 156.00.

This week’s US economic data schedule is somewhat low; up to Friday’s University of Michigan Consumer Sentiment Index, the only available data is of a moderate quality. In May, the UoM’s indexed poll of consumer economic expectations is predicted to decline slightly from 77.2 to 76.0 MoM. In March, the UoM Consumer Sentiment Survey reached a 2.5-year high of 79.4.

USD/JPY increased in value when the Yen declined after the “Yentervention.” Results of the US consumer mood survey are expected on Friday. BoJ doesn’t say anything about intervening in the FX market. Wednesday saw a third day of easy gains for USD/JPY as the pair pares away recent losses from two alleged “Yenterventions” by the Bank of Japan (BoJ). The JPY is still deflating overall, despite the Yen’s valiant attempt to recover from multi-decade lows.

Market players noticed that the BoJ’s market operation reporting significantly exceeded estimates, with the BoJ overspending on various financing operations by approximately nine billion Yen in the first half of last week. The BoJ has gone to considerable measures to neither confirm nor deny that the Japanese central bank conducted two distinct currency interventions on behalf of the Japanese Yen (JPY) last week.

The US will release fresh inflation data next week, and traders of the USD/JPY pair will be watching for Japan’s most recent GDP growth results, which are expected early on Thursday, and the US’s latest round of inflation data later in the week.

Technical forecast for USD/JPY

During the mid-week trading session, USD/JPY rose above the 200-hour Exponential Moving Average (EMA) at 155.04, making a new high close to 155.70 and positioning itself for a run at the 156.00 level. The pair has climbed roughly 2.5% without any hindrance from the swing low below 152.00 last week.