Is USD/JPY heading for a crash?

The USD/JPY exchange rate is rising for the third consecutive day, driven by the strength of the US dollar, which has almost reached 106.30 on the DXY index despite a decline in consumer confidence in September. To keep Japanese inflation above 2%, higher wage growth is needed. Investors express concern about the long-term future as the Federal Reserve (Fed) is expected to keep interest rates high. Meanwhile, the US manufacturing sector is in a vulnerable phase, with a weak order book indicating a possible contraction in activity. The Japanese yen struggles to stabilize as the Bank of Japan (BoJ) supports an accommodating monetary policy awaiting moderate wage growth. Japan is at a critical stage regarding boosting consumption and wage growth, with particular attention to exchange rate movements. Let me know your thoughts, happy trading to all from Nicola, CEO of Forex48 Trading Academy.