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USD/JPY Trend Turns Neutral, Consolidation Possible Provider FX678

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USD/JPY Trend Turns Neutral, Consolidation Possible Provider FX678

The USD/JPY pair moved to a neutral position during the U.S. trading session on Thursday, February 15th, leading to a possible consolidation in the currency market. The U.S. dollar was seen trading at 149.862 against the Japanese yen, experiencing a decrease of 0.43%, while the Japanese yen gained strength with a 0.42% increase.

Despite discouraging economic news from Japan, with the country unexpectedly falling into a recession and losing its title as the world‘s third-largest economy, the yen continued to strengthen. Japan’s annualized gross domestic product fell by 0.4% in the last three months of 2021, leading to a second consecutive contraction. This decline was well below economists’ expectations of 1.4% and led to the yen’s upward movement in the currency markets.

The Bank of Japan’s plans to roll back its ultra-loose monetary policy have become less likely in light of the recession, and the market is now focused on the views of both the Bank of Japan and the Federal Reserve.

In terms of technical analysis, the USD/JPY pair is anticipated to see some consolidation before a potential rebound. The pair’s trend chart suggests that the market may see a boost in the future, with the potential for a larger uptrend towards the 155.50 level.

Overall, the USD/JPY pair’s movement to a neutral position and the possibility of consolidation may lead to greater market uncertainty and fluctuation in the coming days. Traders and investors will be closely monitoring the central banks’ views on recent developments to navigate future currency movements.

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