USD/JPY Surges on BoJ Comments, Traders Eye Support Levels

A sudden move in the USD/JPY has left traders wondering if it's finally time for Yen strength, or just another fleeting attempt.

Bank of Japan board member's comments that a 25 basis point rate increase is 'not necessarily set in stone' and back-to-back rate hikes are possible sent shockwaves through the market yesterday.

On USD/JPY, technical indicators show an oversold stochastic oscillator and strong bearish trends on the ADX. However, this doesn't guarantee a reversal to the upside, with key levels of support at 157 and 156 yen.

The Bank of Japan's meeting on September 18 will likely bring more volatility before then, but for now, USD/JPY is in focus.