USD/JPY stabilized on Friday after another week of gains

Dear traders! USD/JPY was volatile on Friday, ending near where it started the day, just below 157.00, as investors looked to restore balance after a tense week.
Next week's forecast: Fedspeak and PCE remain in focus

Inflation Japan's national consumer price index (CPI) dropped to 2.5% year-on-year in April, but the Bank of Japan (BoJ) is still determined to keep interest rates at rock-bottom levels. , near negative levels until they see inflation expected to fall above 2%. The BoJ now expects CPI inflation to fall below 2.0% through 2025 and some of 2026.

Overall the bullish outlook remains very bullish in the short to medium term supported by the 34 Exponential Moving Average (EMA) level at 156.33 which appears to appear as immediate support, followed by is the psychological level of 156.00. A break below this level could put downside pressure on the USD/JPY pair, potentially pushing it towards upside support at 151.86 before resuming growth. Personally, I still appreciate the UJ Buy Strategy remaining very optimistic, USD/JPY could retest the upper boundary of the rising wedge at around 157.20. If it breaks above this level, the pair could move towards the recent high of 160.32 above which is at least a huge liquidity zone being targeted by the bears. And you? Do you believe that the wave of discounts is still intact?

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