USD/JPY Traders May Eye 152 Next as Downside Momentum Builds

USD/JPY traders are turning their attention to the next level, with the 152 area seen as a possible target as downside momentum strengthens. According to Sina Finance, option-market data show sentiment toward the yen is gradually improving, while one-year yen forward contracts surged as traders covered short positions against the euro, pound, and Swiss franc. According to Sina Finance, global FX contracts remained active even though U.S. markets were closed on Monday for a holiday, with yen crosses among the most active. The report also said short-term traders still have room to operate because the Bank of Japan's next policy meeting is more than a week away and there are no signs that Japanese government officials are resisting rate hikes. The article added that, from a rate-differential perspective, USD/JPY may be closer to 140, as Skylar Montgomery Koning previously noted.