The Japanese yen fell against the dollar by about 0.6% in today’s early European trading session. The rate is heading higher for several days, boosted by interest rate hikes and the possible beginning of monetary tightening in the U.S while the Bank of Japan keeps its aggressive monetary easing with ultra-low short-term interest rates around minus 0.1% and buying unlimited amounts of 10-year JGBs every market day. This should support the economy and ensure more solid wage growth. However, the Japanese yen was pressured and depreciated for several months by this combination of monetary policy while the rate USD/JPY tested the swing highs from decades ago on the Yearly periodicity.

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The hourly perspective heading higher leads the intraday’s developing VWAP and lower value extreme to potential support levels for the dollar side. The lower VWAP close level may emerge to be a buying level in case of a drop. There are slight bearish signs with the possible macro resistance level for the dollar in this particular pair while the trend is extraordinarily strong for the moment.

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The consumer price index CPI and the inflation rate-raising are steadily higher. This pressures the yen additionally while the current forecasts point to a decrease, according to research reports which might be able to support the yen again around the mentioned macro level on the Yearly perspective.

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