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USD/JPY Signal: Multiple Fed Hikes Could Extend Dollar Rally

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Analysts note the Fed has rarely stopped at a single rate increase once tightening begins, and current signals point toward a similar multi-hike cycle starting in September. Historically, this phase creates the stiffest test for equities while extending dollar strength against low-yielding currencies like the yen.

Forex Signal: Buy USD/JPY at 147.20, Take Profit at 149.80, Stop Loss at 145.90. Risk/Reward ratio: 1:2.0. The setup capitalizes on widening rate differentials as U.S. yields climb faster than Japanese benchmarks.

A key risk to this signal is any surprise intervention from Japanese authorities or a sharp equity selloff that triggers yen safe-haven flows, which could compress gains before the target is reached.

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