The USD/JPY pair climbed above 128.20 as the yen continued to weaken. James Bullard, the Fed’s governor for this fiscal year, is more hawkish than he was before. The national consumer price index in Japan is 1.3%, up from 0.9% in the previous month. The USD/JPY price forecast remains strongly bullish as the pair is heading beyond two-decade highs, eying 130.00 amid central bank divergence. –Are you interested in learning more about forex bonuses? Check our detailed guide- Following the holiday hangover, the USD/JPY pair showed strong bullish movement. In the Asian session, the asset touched an intraday high of 128.23. Different interest rate adjustment schedules between the Federal Reserve System (Fed) and the Bank of Japan (BOJ) strengthen the US dollar against the Japanese yen. Fed’s hawkishness Since market participants have begun pricing in aggressive rate hikes and a dovish outlook for the remainder of the year, the dollar has been performing well. James Bullard, head of the Louis Fed, said on Monday that interest rates must increase to 3.5% by the end of the year. As a result of an aggressive gesture from FOMC member James Bullard, the US Dollar Index (DXY) became unstoppable. The DXY index has surged above 101.00 and is attempting to gain traction above it. What’s next to watch? This week’s Consumer Price Index (CPI) will determine the value of the Japanese yen. Japan’s inflation is predicted to be 1.3% rather than 0.9%. As the economy has not yet recovered to pre-Covid-19 levels, the Bank of Japan (BOJ) will opt for a loose monetary policy. Moving ahead, the investors are looking at Fed Chair Powell, who may provide some clues about the monetary policy action for the next month. Get FREE Forex Signals Now! USD/JPY price technical forecast: Bulls looking at 130.00 The USD/JPY price shows a promising uptrend on the 4-hour chart. The key SMAs are lying one above another in a parallel way, indicating strong momentum. The pair may look for another surge towards the 130.00 area. –Are you interested in learning more about ETF brokers? Check our detailed guide- The volume for the recent two bars is very high. The up bar was followed by a down bar that may close near the middle range of the bar with a huge volume. This is another indicator of further bullish price action. However, the bullish rally has not yet seen a correction so far. Hence, we can expect a strong downside correction at any time. 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 Forecast: Shallow Recovery Barred at 1.085 amid Fed Saqib Iqbal 1 week The USD/JPY pair climbed above 128.20 as the yen continued to weaken. James Bullard, the Fed's governor for this fiscal year, is more hawkish than he was before. The national consumer price index in Japan is 1.3%, up from 0.9% in the previous month. The USD/JPY price forecast remains strongly bullish as the pair is heading beyond two-decade highs, eying 130.00 amid central bank divergence. -Are you interested in learning more about forex bonuses? Check our detailed guide- Following the holiday hangover, the USD/JPY pair showed strong bullish movement. In the Asian session, the asset touched an intraday high of… Top 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.