USD/JPY set to extend Friday's rally?
Updated
A divergent them is in play between the Fed and BOJ which could help it recover some more of last week's losses.
BOJ governor Ueda reiterated the central bank's ultra-dovish stance whilst US 1-year consumer inflation expectations spikes 0.8% pct point and the Fed's Waller delivered his latest hawkish remarks (inflation remains too high and we've not done enough to fight it).
A bullish engulfing candle formed on Friday, making a potential swing low around its YTD low and monthly S1 pivot point. The OBV (on balance volume) has broken to a new cycle high ahead of price action to suggest bulls have the upper hand.
- The bias is for a move to the 134.50 resistance zone, a break above which brings 135 into focus.
- If prices pull back, we'd look for evidence of a swing low between 133.20/50 around the weekly and monthly pivot points
- This could also incre4ase the potential reward to risk ratio
BOJ governor Ueda reiterated the central bank's ultra-dovish stance whilst US 1-year consumer inflation expectations spikes 0.8% pct point and the Fed's Waller delivered his latest hawkish remarks (inflation remains too high and we've not done enough to fight it).
A bullish engulfing candle formed on Friday, making a potential swing low around its YTD low and monthly S1 pivot point. The OBV (on balance volume) has broken to a new cycle high ahead of price action to suggest bulls have the upper hand.
- The bias is for a move to the 134.50 resistance zone, a break above which brings 135 into focus.
- If prices pull back, we'd look for evidence of a swing low between 133.20/50 around the weekly and monthly pivot points
- This could also incre4ase the potential reward to risk ratio
Note
First target reached now looking for it to continue higher towards the 135 resistance zone and weekly R2 pivot around 134.42.
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