Yen bulls are optimistic that there might be a BoJ policy change soon. Japan’s government might revise the BoJ’s inflation target. The US private sector contracted for the sixth consecutive month in December. Today’s USD/JPY forecast is bearish. On Monday, the yen increased on reports that the Bank of Japan and the Japanese government may soon amend their joint statement regarding the central bank’s inflation target, thus opening the door for a change to the BoJ’s ultra-loose monetary policy. –Are you interested to learn more about day trading brokers? Check our detailed guide- Following an increase of more than 0.5% to a session high of 135.78, the yen last traded 0.4% higher at 136.19 per dollar. The joint declaration the BoJ and the Japanese government signed in 2013, committing the central bank to attain a 2% inflation target as soon as possible, may be revised by the government of Japan in the coming year. If a change were to be made, it would take place after the appointment of a new governor of the BOJ in April, which may increase the likelihood that the ultra-loose monetary policy of outgoing Governor Haruhiko Kuroda will be revised. The yen has fallen more than 15% this year due to that policy position and the resulting interest rate differences with the rest of the world. The Flash US Composite PMI Output Index, which measures the manufacturing and services sectors, dipped to 44.6 this month from 46.4 in November. It was the sixth consecutive month that the indicator remained below the 50 line, which implies a contraction in the private sector. USD/JPY key events today All focus will be on the BoJ policy meeting later today, where investors expect the bank to hold its negative rates and maintain its dovish stance. Get FREE Forex Signals Now! USD/JPY technical forecast: Bearish momentum returns below the 30-SMA USD/JPY has respected the 138.00 key resistance level by bouncing lower and breaking below the 30-SMA. The RSI has crossed below the 50 mark, indicating a sentiment shift to bearish. Currently, the price is retesting the 30-SMA as resistance before likely falling lower. –Are you interested to learn more about forex options trading? Check our detailed guide- If bears can maintain control, the price will likely take out the 135.01 support and fall to the 134.00 support level. Bulls can return at any one of these support levels, but the bearish move will continue if the price stays below the 30-SMA. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Majors share Read Next EUR/USD Outlook: Poor US Data Points to Slowing Economy Saqib Iqbal 1 month Yen bulls are optimistic that there might be a BoJ policy change soon. Japan's government might revise the BoJ's inflation target. The US private sector contracted for the sixth consecutive month in December. Today's USD/JPY forecast is bearish. On Monday, the yen increased on reports that the Bank of Japan and the Japanese government may soon amend their joint statement regarding the central bank's inflation target, thus opening the door for a change to the BoJ's ultra-loose monetary policy. –Are you interested to learn more about day trading brokers? Check our detailed guide- Following an increase of more than 0.5%… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.