The big rate differential between the Federal Reserve and the Bank of Japan keeps USD/JPY's bias on the upside, after BOJ's major shift on Tuesday.
USD/JPY will climb due to the favourable daily chart.
Japan's yen currency fell sharply on Tuesday after the BOJ ended its negative interest rate policy in a monumental but highly anticipated decision.
In a historic shift from decades of massive monetary stimulus, the BOJ ended eight years of negative interest rates and other remnants of unorthodox policy at the conclusion of a two-day monetary policy meeting.
USD/JPY since Thursday has traded above the kijun line, the midpoint of the last 26 days, at 148.68.
That has paved the way for a retest of the 2024 150.88 high, above which would unmask the 2023/2022 151.92/94 peaks for a retest.
As the 30- and 60-day correlations between USD/JPY and EUR/JPY are above +0.70, the two currency pairs tend to move in tandem.
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