I suspect as of now that the pair will probably be a bit indifferent as we wait to see what language comes out of this meeting. USD/JPY retreated slightly during Thursday’s trading as we tested the ¥1 5 area. This is an area that is likely to provide support going forward, especially if the 50-day EMA lies below it. So I like to buy this market on the ladder because there has been significant upside pressure for some time. Advertisement Image Strong Dollar Swings Make Very Profitable Trades Move Now! Remember that the Bank of Japan continues to manage the yield curve, which means they are buying unlimited bonds to keep the 10-year bond rate at 0.25%, which is tantamount to depressing the yen. In other words, the market is flooded with Japanese currency and there is currently a slight shortage of US dollars. That doesn’t necessarily mean we’re going to speed up, and to be fair, the Bank of Japan has been very active in currency markets trying to keep the yen from weakening. However, this is a lost cause because if they continue to manipulate the bond market, there is no way for the Japanese yen to appreciate significantly. Fed’s hawkishness favors dollar The Fed’s withdrawal from aggressive tightening may provide some relief for the Japanese yen. Many traders began to speculate that the Fed might not be pushing as hard as previously thought, as the Bank of Canada and Australia both raised interest rates less than expected. However, it is worth noting that the European Central Bank actually raised interest rates to 2% on Thursday, as expected. In other words, the Europeans saw no need to slow down, so it will be interesting to see what the Fed says next Wednesday. In fact, I suspect that from now on, the couple will probably be a bit indifferent as we wait to see what language comes out of this meeting. If the Fed remains hawkish, I expect the bullish trend in this market to continue and we will once again look at the ¥150 level.