Haruhiko Kuroda warned investors of Japan’s worsening economic outlook. The BOJ will not raise rates until it sees higher wage growth. The price is at a critical resistance level on the charts. Today’s USD/JPY forecast is bullish as the Bank of Japan plans to retain its relaxed monetary policy. There are darker days ahead for the yen. The Bank of Japan remains unsawed by the current wave of rate hikes globally, aiming to control inflation. –Are you interested to learn more about forex options trading? Check our detailed guide- On Monday, Bank of Japan governor Haruhiko Kuroda warned the markets of uncertainty in Japan’s economic outlook. He said the central bank would be ready to scale up stimulus to support the weak economy. “Uncertainty regarding Japan’s economy is very high given risks such as the COVID-19 pandemic’s impact, the Ukraine crisis, and rising commodity costs,” Kuroda said. The central bank’s stand on inflation, however, remains unchanged. Kuroda insists the current spike in inflation is mainly ‘cost-push’ and, therefore, temporary. He sees no need to raise interest rates when inflation is driven by rising fuel costs that will go down in time. Only one thing will push the central bank to follow in the path of other major central banks; rising wage growth. It will signify that inflation is becoming entrenched in the labor market and the broader economy. Until then, the BOJ will sit on its hands and watch other central banks scramble to try and control inflation. Japan’s ruling coalition won 63 seats, up from 55 in Monday’s election, but showed no change in the ultra-easy monetary policy, which saw the USD/JPY rally. USD/JPY key events today USD/JPY investors do not expect to receive significant news releases from Japan today. There will be a speech from FOMC member Williams that might give monetary policy clues. Get FREE Forex Signals Now! USD/JPY technical forecast: Bulls hit a new high The 4-hour chart shows the price in a strong bullish move. The price is trading well above the 30-SMA, showing a steep trend, and the RSI is nearing oversold territory, favoring bullish momentum. The price is currently trading around the June 29 high at 137.016. This strong resistance level pushed the price lower in June and might do so again. –Are you interested to learn about forex robots? Check our detailed guide- If bulls can maintain their momentum, we might see the price breaking above this level and heading higher. However, the price might retest the July 5 resistance at 136.262 before continuing its bullish move. Looking to trade forex now? Invest at eToro! Trade Forex Now! 68% 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: Russia to Extend Nord Stream 1 Maintenance Saqib Iqbal 4 weeks Haruhiko Kuroda warned investors of Japan's worsening economic outlook. The BOJ will not raise rates until it sees higher wage growth. The price is at a critical resistance level on the charts. Today's USD/JPY forecast is bullish as the Bank of Japan plans to retain its relaxed monetary policy. There are darker days ahead for the yen. The Bank of Japan remains unsawed by the current wave of rate hikes globally, aiming to control inflation. -Are you interested to learn more about forex options trading? Check our detailed guide- On Monday, Bank of Japan governor Haruhiko Kuroda warned the markets… 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.