**USD/JPY Surges to 148 Yen Mark as AUD/USD Struggles: Forex Market Insights**
*Original reporting by SSB Crack News, with additional context from FXStreet and Investing.com.*
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The foreign exchange market has been witnessing significant movements, particularly in the USD/JPY and AUD/USD pairs. The US dollar’s climb above the 148 yen level and mounting weakness in the Australian dollar against the greenback reflect wide-ranging macroeconomic factors, shifting central bank policies, and evolving risk sentiment across global markets. This analysis explores the recent developments, key drivers, and outlook for these pivotal currency pairs.
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### **Highlights: Recent Forex Developments**
– USD/JPY surged past 148, signaling robust dollar strength and yen softness.
– AUD/USD remains under pressure, reflecting vulnerability to ongoing US dollar gains and shifting commodity price dynamics.
– Central bank commentary and latest economic data continue to sway forex market trends.
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## **USD/JPY: Dollar Extends Gains Over Yen**
### **Recent Movement and Factors**
The USD/JPY pair surged to 148.00, marking a multi-week high and prompting significant market attention. The movement is underpinned by several macro and domestic Japanese factors:
1. **Widening US-Japan Yield Differential**
– The Bank of Japan persists with ultra-easy monetary policy and negative interest rates.
– The US Federal Reserve maintains a hawkish stance, keeping US rates elevated.
– This divergence in policy yields supports capital outflows from Japan into higher-yielding US assets.
2. **Bank of Japan’s Cautious Approach**
– Despite hints about normalizing policy, the BoJ remains cautious.
– Latest communication from Governor Kazuo Ueda signaled no immediate rate hikes.
– Traders do not expect an end to negative rates until after Q2 2024.
3. **US Economic Strength**
– Strong US GDP growth and robust labor market data underpin the dollar’s gains.
– US inflation readings, while moderating, remain above the Fed’s preferred levels.
– The Fed’s rhetoric has remained defensive, signaling the possibility of additional tightening if required.
4. **Safe Haven Dynamics**
– Rising global risk aversion due to geopolitical tensions and recession fears supports USD purchases.
5. **Speculation on BoJ Intervention**
– As yen weakens, speculation grows over potential Japanese government intervention, though authorities have stayed clear of the market so far.
#### **USD/JPY Technical Insights**
– Price action has decisively broken above short-term resistance at 147.50 and heads towards 148.50.
– RSI and MACD momentum indicators point to sustained bullish momentum.
– Technical analysts identify next immediate resistance at 149.10 and major resistance near the psychologically significant 150.00 handle.
– Support is now established at 147.20 and 146.70.
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### **Market Reactions and Trader Sentiment**
The market’s reaction
Read more on AUD/USD trading.