Japanese government officials are criticizing the BOJ over the yen’s weakness. The yen’s weakness is inflating import costs for raw materials. The bulls are showing weakness in the charts. The USD/JPY forecast is edging lower on Thursday. The yen is gaining on the dollar as Japan’s government officials criticize the Bank of Japan for a yield cap policy that has seen the yen collapse. The BOJ’s Governor, Haruhiko Kuroda, continues to defend the bank’s 10-year JGB yield cap of 0.25%, insisting low interest rates support the economy. -Are you interested in learning about forex live calendar? Click here for details- “Recent moves are very sharp and problematic. The yen could weaken further as the Japan-U.S. interest rate gap widens. We’re seeing a negative spiral in which Kuroda’s comments stressing the need to defend the 0.25% cap are accelerating yen falls,” said Okina, a former BOJ official to Reuters yesterday. The yen’s weakness is causing inflation in the cost of importing fuel and raw materials. USD/JPY key events today USD/JPY investors will be paying attention to the Purchasing Managers Index data from the US, which will show activity levels in the manufacturing and services sectors. The manufacturing PMI is expected to drop from 57.0 to 56.0, while the services PMI is expected to go up by a percentage point to 53.5. They will also expect to hear from Fed Chair Powell, who will go on with his testimony later in the day. In Japan, investors expect inflation data to show the national core CPI holding at 2.1%. Japan is one of the few countries with low inflation and a relatively dovish central bank. It has seen the yen weaken against the dollar significantly. A surprise in the inflation data could cause some volatility in the pair. Get FREE Forex Signals Now! USD/JPY technical forecast: RSI showing weak bulls Looking at the 4-hour chart, we see the price pushing lower toward the 30-SMA at 135.00. The RSI is showing weakness in the bullish momentum, as seen in how there is a bearish divergence. At this point, the price is also experiencing significant support from the 135.00 critical psychological level. If bulls are weak, as seen in the RSI, bears might be able to push the price below the 30-SMA and 135.00. -Are you interested in learning about forex signals? Click here for details- However, if 135.00 holds as support, we could see the price pushing higher to make a new high. 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 GBP/USD Price Offered Below1.23 Psychological Level, Eying US Data Olimpiu Tuns 7 months Japanese government officials are criticizing the BOJ over the yen's weakness. The yen's weakness is inflating import costs for raw materials. The bulls are showing weakness in the charts. The USD/JPY forecast is edging lower on Thursday. The yen is gaining on the dollar as Japan's government officials criticize the Bank of Japan for a yield cap policy that has seen the yen collapse. The BOJ's Governor, Haruhiko Kuroda, continues to defend the bank's 10-year JGB yield cap of 0.25%, insisting low interest rates support the economy. -Are you interested in learning about forex live calendar? Click here for details-… 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.