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High Impact

USD/JPY Set to Rally Towards 20-Day EMA as US Dollar Strengthens

📅
🏷Markets
📰via FXStreet
✍️Edited by Luís Barata

The USD/JPY exchange rate is expected to continue its upward trend, driven by a strengthening US dollar. This movement is primarily influenced by the rate differential between the US and Japan, as the Federal Reserve's hawkish stance contrasts with the Bank of Japan's accommodative monetary policy. The US dollar's firm performance is likely to bolster demand for USD-denominated assets, particularly impacting currency traders focused on the USD/JPY pair. Traders will be closely watching upcoming US economic data releases, particularly inflation figures, which could further influence the Fed's monetary policy outlook and the dollar's strength.

Source: Originally reported by FXStreet at May 12, 2026. Summary and market context by Trading News Terminal editorial.

About USD

The US Dollar (USD) is the world's primary reserve currency and the base for most forex majors. Headlines about Federal Reserve policy, US macro data (CPI, NFP, GDP), and Treasury yield shifts typically drive USD pair direction within seconds of release.

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