USD/JPY crosses 148.32 mark as Yen continues rallying

The USD/JPY pair is approaching a seven-week low, with the Yen gaining over one percent against the dollar. The pair has seen three consecutive days of declining as markets bid the Yen and the US dollar faces selling pressure.

On Monday, the pair is aiming below 148.00, trading at 148.32. The Yen is recovering from multi-year lows due to overall declines in the US Dollar’s speculative position.

The key for Yen bulls is to maintain the JPY’s trajectory through the upcoming Japanese inflation figures. The core CPI is predicted to show a slight improvement in Friday’s Japan National Consumer Price Index (CPI) inflation reading, with the annualized figure expected to increase slightly from 2.8% to 3.0%.

The Bank of Japan’s extreme dovishness has contributed to the Yen’s decline to some of its lowest levels against other major currencies in fifteen years. As the pair dips below the 50-day Simple Moving Average (SMA) for the first time since late July, the USD/JPY is poised for its third straight day of losses.

The pair has dropped more than 2.5% from its early peak at 151.91 last week. Despite the short-term downside, the USD/JPY is still well-bid and trading well above the 200-day SMA, pushing up into 142.00.