The Japanese yen has surged by about 5% against the US dollar in July, setting the stage for more volatility as the Bank of Japan prepares to decide on interest rates this week. The USD/JPY pair has become a favorite for bearish traders. After months of the yen struggling, the exchange rate has reversed dramatically. The yen's rally against the weakening dollar has seen a significant 5% increase so far in July, and further fluctuations are anticipated this week. With the Bank of Japan's key Wednesday meeting approaching, traders are bracing for action. The meeting will determine whether policymakers decide to raise the benchmark interest rate. Market sentiment is evident in the yen's recent surge, as forex traders expect the BoJ to raise rates by 0.15% or even 0.25%. This expectation has pulled the yen out of its 38-year low. If the BoJ does increase rates, it could solidify the yen's rally and continue its upward trajectory against the dollar. Conversely, analysts warn that if the BoJ leaves rates unchanged, the yen could drop back to around ¥160. Early on Monday, the dollar-yen pair was at a three-month low of approximately ¥153.50, down 5.1% from its early-July peak of ¥162, a level not seen since 1986. Despite the yen's strength, the dollar remained strong against other major currencies, with the EUR/USD pair hovering near $1.0850. As the BoJ's decision approaches, traders are on high alert, ready to adjust their positions based on the central bank's move. The outcome will likely have significant implications for the yen's performance and the broader forex market. Read our other insightful economic news: https://bit.ly/FPGGlobalEco #FPG #Fortuneprimeglobal #commodity #equity #technicalanalysis #technology #news #investors #intraday #investing