Japan’s government has raised concern over the yen’s sharp decline. BOJ is expected to hold rates at -0.1%. Japan’s inflation remains low compared to other developed economies. Th weekly USD/JPY forecast is bullish as the BOJ is expected to maintain its negative rates while the Fed is preparing for yet another hike. –Are you interested to learn more about forex signals? Check our detailed guide- Ups and downs of USD/JPY There was a time when some investors believed the worst was over for the yen. These beliefs were destroyed in the past week as the yen fell further against the dollar. The week started with BOJ Governor Haruhiko Kuroda’s warnings about Japan’s worsening economic outlook. Markets also got a chance to confirm the ultra-loose monetary policy adopted by the BOJ when Japan’s ruling coalition party won more seats, vowing to maintain the current policy. A change in Japan’s monetary policy might not be in the cards. As the yen suffered sharp declines during the week, Japan’s government got concerned and said it would closely monitor US monetary policy and inflation trends. This concern was still not enough, as the possibility of a 100bps rate hike from the Fed put the last nail in the coffin. The yen’s future remains bleak. Next week’s key events for USD/JPY The Bank of Japan intends to maintain its dovish stance at the meeting. “When you look across the world, the BOJ’s dovish monetary policy stance is an easy target for overseas investors who may build up yen-selling positions,” said Mari Iwashita, chief market economist at Daiwa Securities. The BoJ is in no rush to withdraw its stimulus as the economy is yet to recover, and inflation is slightly above the 2% target. Get FREE Forex Signals Now! “If necessary, we’ll take additional monetary easing steps without hesitation with an eye on the impact of the pandemic,” BOJ Governor Haruhiko Kuroda said on Monday. Investors expect the bank to hold its rates at -0.1. USD/JPY weekly technical forecast: Bulls halt never-ending rally at 139. The daily chart shows the price has taken a new high and is experiencing resistance at 139.013. We can also see a bearish divergence in the RSI, showing weakness in the new high. –Are you interested to learn more about automated trading? Check our detailed guide- This weakness could mean a pullback to the 22-SMA or lower. If the price breaks below the 22-SMA, it will likely find support at 131.961, which acted as support on June 16. The uptrend will continue if the price stays above the 22-SMA and the RSI stays above 50. 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 USD JPY Forecast share Read Next USD/CAD Forecast: Soft US Inflation Expectations Weighing on USD Saqib Iqbal 6 months Japan’s government has raised concern over the yen’s sharp decline. BOJ is expected to hold rates at -0.1%. Japan’s inflation remains low compared to other developed economies. Th weekly USD/JPY forecast is bullish as the BOJ is expected to maintain its negative rates while the Fed is preparing for yet another hike. -Are you interested to learn more about forex signals? Check our detailed guide- Ups and downs of USD/JPY There was a time when some investors believed the worst was over for the yen. These beliefs were destroyed in the past week as the yen fell further against the… 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.