**Japanese Yen and Australian Dollar Forecasts: Can USD/JPY Break 145 as US Jobs Report Approaches?**
*(Adapted from a piece by Christopher Lewis, FX Empire)*
The interconnected world of forex trading brings out intense scrutiny on major currency pairs, especially when global economic events are on the horizon. As the United States prepares to release its monthly jobs numbers—an event known for sparking significant volatility—traders are focusing closely on movements in the Japanese Yen (JPY) and the Australian Dollar (AUD) against the US Dollar (USD). With the USD/JPY approaching the psychologically important 145 level, and the AUD/USD at a pivotal juncture, upcoming data has the potential to trigger notable shifts in the forex markets.
This article delves into recent price action and technical analysis for these currency pairs, examines influences from monetary policy and global trends, and assesses market sentiment as the US jobs report—traditionally the Non-Farm Payrolls (NFP)—looms.
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## USD/JPY: Approaching a Pivotal Level
### Recent Market Movements
Over recent sessions, the USD/JPY currency pair has approached the 145 level, a zone that historically has attracted attention from both traders and the Bank of Japan (BoJ). As the US Dollar strengthens, many are asking whether this resistance can be overcome or whether intervention may occur.
**Key points in recent price action:**
– USD/JPY has experienced upward momentum, driven by robust economic data from the US and divergent central bank policies.
– The 145 mark served as a ceiling in prior rallies, where Japanese authorities have in the past stepped in to counter excessive Yen weakening.
– Volatility increased as traders bet on either a breakthrough or a pullback, awaiting cues from the upcoming jobs data.
### The Role of Divergent Central Bank Policies
A significant factor in the USD/JPY’s movements is the contrast between the Federal Reserve and the BoJ:
**Federal Reserve:**
– Has maintained a relatively hawkish stance amid persistent inflation in the US.
– High interest rates in the US, relative to Japan, continue to attract capital flows into the Dollar.
**Bank of Japan:**
– Holds on to ultra-accommodative policies, keeping interest rates near zero.
– Intervention from the Japanese government remains a risk whenever the Yen depreciates rapidly or surpasses key levels.
### Recent Interventions and Market Reactions
Japan’s Ministry of Finance has, in recent years, intervened in the currency markets when Yen weakness threatened economic stability. While there has not yet been direct intervention in the current rally, the risk is ever-present if USD/JPY moves aggressively above 145.
**Traders take into account:**
– The speed and scale of Yen depreciation.
– Official statements expressing concern or outright dissatisfaction with currency movements.
– The likelihood of coordinated action, which though rare, can lead to rapid reversals.
## AUD/USD: Struggling to Find Traction
### Challenges Facing the
Read more on AUD/USD trading.