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USDJPY

USDJPY – in accumulation phase but undoubtedly bullish .. 13 JanWeekly – Bullish, although it has been consolidating for the past 3 weeks. Daily – same as weekly. Please note that the bears have been unable to push price lower. Price is well above the 200dma. The area around 156.20 was has been tested multiple times and provides solid support (was resistance earlier). H4 – In line with the weekly and daily charts. A pullback to 156.20 and a bullish bounce there would be ideal, however that may not happen. We could see bullish price action even earlier. I will be monitoring PA closely and look for taking an entry whenever I see convincing bullish strength. An obvious target would be the next resistance in the 161.70 region. This is not a trade recommendation, merely my own analysis. Trading carries a high level of risk, so only trade with money you can afford to lose and carefully manage your capital and risk. If you like my idea, please give a “boost” and follow me to get even more. Please comment and share your thoughts too!! It’s not whether you are right or wrong, but how much money you make when you are right and how much you lose when you are wrong – George Soros
Long
by Trading_Vista
USDCAD Consolidation: Eyeing a Breakout Above Key Resistance USDCAD is currently trading at 1.443, with a target price of 1.490, suggesting a potential gain of over 500 pips. The analysis is based on the support and resistance pattern, indicating that the pair is holding its main resistance level. A breakout above this resistance level is being anticipated. Currently, the pair is in a consolidation phase, where price movements are relatively limited. This phase often signifies market indecision and can precede significant price action. Traders are closely monitoring the breakout potential, as a breach of resistance could signal strong upward momentum. The technical setup suggests bullish sentiment, with the resistance level acting as a critical price point. If the breakout occurs, it may confirm the continuation of the uptrend. However, traders should remain cautious and consider potential reversals if the resistance holds.
Long
by AndrewsMarket-Mastery
USDJPY Will Collapse! SELL! My dear followers, This is my opinion on the USDJPY next move: The asset is approaching an important pivot point 158.40 Bias - Bearish Technical Indicators: Supper Trend generates a clear short signal while Pivot Point HL is currently determining the overall Bearish trend of the market. Goal - 157.58 About Used Indicators: For more efficient signals, super-trend is used in combination with other indicators like Pivot Points. ——————————— WISH YOU ALL LUCK
Short
by AnabelSignals
1
USD/JPY: where is my carry trade?Hi everyone, Since my last idea, a lot has changed. My swing target of 150 was reached, and buyers took over in December. Recently, USD/JPY hit a 6-month high of ~158.5. Since that low at 150 in December we saw different major signals from UJ: "When the last buyer died..." buyers volume spike on 19 of December. Healthy accumulation on 4 of December supported the rally, showing more love for the dollar than yen. "Heyyy, I know this thing—order block!" Post-Dec 19, price rose to 158.4 with waning buyer volume and mounting shorts. OB or just noise? Suspicious either way. "Is this still an uptrend?" Price action shows small but consistent higher highs/lows. Volatility indicators hint at rising consolidation. "Dollar supremacy forever?" Yes, dollar is stronger, but corrections happen. Whether at 70 or 175 USD/JPY, dollar will still be stronger. "BoJ wouldn't intervene before 160. Are they bluffing?" May be possible, but I doubt it. The finance minister concern was very high yen depreciation and they mentioned that "we wouldn't let USD/JPY reach 160". But Japan’s MO is more stealth than spectacle I think. Lastly, for my technical analysis lovers, pitchforks . Pitchforks are a more "hipster" way to draw trendlines. Maybe also more mathematical way. They are easy, but advanced pitchfork usage may be tricky. As you see in the chart, we’re stuck between an upper bound and a demand zone. This supports my idea of consolidation, since the demand zone and the upper pitchfork are the current support and resistance. Another one for tech analysis lovers. Elliott Waves . There is a possibility that we are in the so called "elliot correction waves", which is often seen after an uptrend. Leg A was the summer drop, leg B took us to 158.5, and leg C could dip us to 136–146. Probability? No idea, but the range fits the pitchfork, Elliott theory, and interest rate differential. Your guess is as good as mine. Chapter 1: Rising Distribution – Not Your Average Wyckoff The distribution I am talking about is not the Power of Three or AMD distribution concept. For old school lovers, the distribution I mean is based on Wyckoff method. Wyckoff was an analyst who described the difference between trends and ranging markets way before traders had 3 screens with gradient indicators and fancy ways to detect the regime. In his method, there is a thing called "distribution". It is when the institutions are fed up with the uptrend and want to sell an asset. This is also when the "buys" are transferred from institutional hands to our, normal traders, hands. How does it work? FOMO, news and herd instinct. This is where "don't stand in front of an ultra-fast train" fails. Classic Wyckoff distribution : the point where institutions get off the train, and retail traders hop on thinking it’s express to the moon. Rising distributions happen when the crowd still expects an uptrend, but the big players quietly exit. Seems like they have another train plan. At least, that's what the volume delta says. :) Chapter 2: The Macro Mix US is strong. Still solid. Even with inflation and bubbles, USD rides high thanks to its post-WWII economic dominance. This allows US to export their debt until today. Debt, tech booms, and AI surges aside, the system holds. We’ve swapped dot-com booms (2000 DotCom Bubble) for AI hype and NVIDIA super-processors. Just like the early 2000s with software, we’re seeing another leap, but with AI, robotics, and LLMs instead of spreadsheets and PCs. I wont mention any other issues with US economy, you could read that in my previous idea, and Trump tariffs wouldn't help it either, so everything stays the same. Another thing, but not only concentrated on US: wealth gap. Wealth gaps grow, and some of the folks that were living right in the middle, having more than enough, but not too much, are struggling financially now, or became rich and big. But blindly piling into assets isn't the answer. Markets shift, and the rich adapt. If you want more insights about the wealth gap and how it may worsen the recession, check out the amazing videos from "Garys Economics" . A former Citi bank top trader, Gary specializes in forex, especially Yen and Swiss franc. Chapter 3: Yen vs. Dollar Carry Trade The interest rate differential is narrowing. BoJ raised their rates for the first time since the '90s. Japan’s deflationary pressures pushed change . Sure thing Japan has to change something, and they did and will do. Japan is still a tech and automotive powerhouse, but monetary policy is tricky. Wouldn’t a cheaper yen help exports? Its complicated. Dollar and euro is still doing fine, being ones of the leading currencies in the world and also leading in exports. I don't think that matters that much. Now, zoom out of the chart. Historically, USD/JPY was 138–145 at similar USD rates. Add the new yen rate, and voilà: you get my 136–146 range. ----------- Finalizing, USD/JPY is my muse. It is my main trading currency, maybe the only one. The a constant battle between east and west, logic and mystery is truly beautiful. Since Dec 19, it’s been weird for most of us. Currently with AI surging in trading, we see companies fighting to find the alpha in the market. The strategy that will always work, the key to unlocking the market. This goes on for years and didn't start only now. Markets evolve, new players enter, and unexpected events (Black Swans) rewrite everything. Nevertheless, the "holy grail" strategy doesn’t exist (yet). More and more AI models are flexible and need to be improved faster and faster. So should your strategy be, even if you are not an AI. AI or not, adaptability is your true alpha. I’ve also updated my own metrics, ditched outdated ones, and embraced new indicators and models. Learn some coding. Python, R, and Pinescript will be as essential as Excel soon. You could also start with pinescript by editing your indicators/strategies in a way, that your ideas are implemented in it. Never stop learning, even when it feels like the market is gaslighting you. Navigate the markets like an explorer: decode shifting patterns and embrace the unknown future. Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Always perform your own analysis before making trading decisions.
Short
by akvil3
Fundamental Market Analysis for January 10, 2024 USDJPYThe Japanese Yen is weakened by doubts over the likely timing of the next BoJ rate hike. The US Dollar holds near a two-year high and supports USD/JPY ahead of the US NFP report. The Japanese Yen (JPY) is rising in response to comments from Japan's Economy Minister Ryosei Akazawa during the Asian session on Friday, although it lacks bullish confidence amid uncertainty over the Bank of Japan (BoJ) rate hike. Data released today showed that real household spending in Japan fell for a fourth month in November, indicating that the economy is fragile. This gives the BoJ another reason to be cautious about further interest rate hikes, which could continue to undermine the yen. In addition, the yield differential between US and Japanese bond yields has widened significantly over the past month amid the Federal Reserve's (Fed) tightening bias. This could help push down Japanese Yen yields and serve as a tailwind for the USD/JPY pair amid a bullish trend for the US Dollar (USD). Meanwhile, traders may prefer to stay on the sidelines and wait for the release of the important US Non-Farm Payrolls (NFP) report before making aggressive directional bets on the currency pair. Trade recommendation: Watching the level of 158.60, trading mainly with Buy orders
Long
by Fresh-Forexcast2004
Markets were in consolidation on 9th Jan 20259th January 2025 DXY: Consolidate between 109 and 109.40, could breakout to 110 NZDUSD: Sell 0.5575 SL 30 TP 60 AUDUSD: Look for reaction at 0.62, Buy 0.6220 SL 25 TP 50 or Sell 0.6175 SL 20 TP 60 GBPUSD: Sell 1.2260 SL 20 TP 70 EURUSD: Sell 1.0270 SL 25 TP 60 USDJPY: Watching that 158 resistance level EURJPY: Sell 162.40 SL 50 TP 80 GBPJPY: Sell 193.30 SL 50 TP 100 USDCHF: Buy 0.9130 SL 20 TP 50 USDCAD: Buy 1.4415 SL 20 TP 45 XAUUSD: Watch 2672 resistance (61.8%), possible rejection.
TVC:DXY
by JinDao_Tai
Bearish reversal?USD/JPY is rising towards the resistance level which is an overlap resistance that aligns wit the 78.6% Fibonacci retracement and could drop from this level to our take profit. Entry: 158.31 Why we like it: There is an overlap resistance level that aligns with the 78.6% Fibonacci retracement. Stop loss: 158.77 Why we like it: There is a resistance level at the 100% Fibonacci projection. Take profit: 157.66 Why we like it: There is a pullback support level. Enjoying your TradingView experience? Review us! Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group.
Short
by VantageMarkets
XAU/USD : And Another Bullish Move Ahead! (READ THE CAPTION)Gold prices have followed an interesting trajectory over the past 24 hours, aligning perfectly with our earlier expectations. After a strong rally, gold hit the critical target of $2656, reaching as high as $2664 before entering the marked supply zone. As anticipated, the supply zone acted as a resistance, triggering a sharp decline to $2642. This movement provided an excellent trading opportunity for those who closely monitored the levels outlined in our previous analysis. Current Market Context At the moment, gold is trading around $2650, navigating within a crucial range. The price action suggests that gold is testing the resilience of buyers and sellers. If it stabilizes above $2644, we could see further bullish momentum, with the potential to hit the following targets: • $2655 – A minor resistance level, which could set the tone for stronger upward momentum. • $2661 – The next key level, signaling continued bullish strength. • $2666 – A level of psychological resistance, marking a significant test for buyers. • $2673 – The ultimate target for this leg of the rally, contingent on sustained demand and favorable conditions. Fundamental Factors Driving Gold Prices Gold's current trajectory has been influenced by a mix of technical setups and fundamental drivers: • U.S. Economic Data: Robust job market data released earlier this week highlights the resilience of the U.S. economy. Job openings rose to 8.09 million in November, reflecting strong economic activity. However, this has bolstered the U.S. dollar and treasury yields, creating headwinds for gold as a non-yielding asset. • Federal Reserve Policy Outlook: Expectations for further rate cuts by the Federal Reserve have diminished, as recent comments from Fed officials suggest a cautious approach to monetary easing. Fed Governor Lisa Cook emphasized that the Fed may slow down rate cuts due to persistent inflation. • Central Bank Gold Demand: On the bullish side, the People’s Bank of China (PBOC) increased its gold reserves for the second consecutive month, a move that reflects sustained demand for the metal from the world’s largest consumer. Central bank purchases, particularly in the context of geopolitical uncertainties, have continued to support gold prices globally. Technical Insights From a technical standpoint: • Support Levels: If gold fails to hold above $2644, we could see a deeper retracement toward $2633 and possibly $2625. These levels represent the nearest support zones where buyers may re-enter the market. • Resistance Levels: On the upside, the supply zone between $2664 and $2673 will be a critical area to watch. A break and sustained close above $2673 could signal the start of a new bullish trend. • Market Sentiment: Despite recent volatility, sentiment remains cautiously optimistic, with traders closely watching global economic data and U.S. Federal Reserve updates for further direction. Looking Ahead Key events later this week, including U.S. jobs data and the ADP employment report, will likely have a significant impact on gold's short-term direction. Traders should also keep an eye on movements in the U.S. dollar index (DXY) and treasury yields, as these remain inversely correlated with gold prices. Action Plan: For now, the focus remains on how gold reacts around $2644. If the metal stabilizes above this level, traders can look for opportunities to target $2655, $2661, and beyond. Conversely, a breakdown below $2644 could lead to short-term selling pressure, offering opportunities for a potential retracement trade. Stay tuned for further updates and detailed analysis! Let’s capitalize on these market moves! Please support me with your likes and comments to motivate me to share more analysis with you and share your opinion about the possible trend of this chart with me ! Best Regards , Arman Shaban
OANDA:XAUUSDLong
by ArmanShabanTrading
77
#USDJPY 2HUSDJPY (2H Timeframe) Analysis Market Structure: The price is currently testing a key resistance level, which has previously acted as a barrier to upward movement. Signs of rejection at this level indicate potential selling pressure. Forecast: A sell opportunity is anticipated if the price continues to face rejection from the resistance zone, signaling a possible move downward. Key Levels to Watch: Entry Zone: Near the resistance level after confirmation of rejection. Risk Management: Stop Loss: Placed above the resistance zone or recent swing high to minimize risk. Take Profit: Target the nearest support levels for potential downside movement. Market Sentiment: Selling pressure is expected to dominate as long as the price remains below the resistance level, maintaining a bearish outlook.
Short
by PIPSFIGHTER
Levels discussed on livestream 8th Jan 20258th January 2025 DXY: Consolidating just below 50% (108.70), stronger ADP, DXY break higher, to 109.20 NZDUSD: Sell 0.5620 SL 20 TP 30 AUDUSD: Look for reaction at 0.62 strong round number support GBPUSD: Sell 1.2450 SL 25 TP 80 EURUSD: Sell 1.0320 SL 30 TP 60 USDJPY: Watching that 158 resistance level EURJPY: Sell 162.95 SL 30 TP 60 GBPJPY: Sell 196.50 SL 30 TP 70 USDCHF: Buy 0.9120 SL 20 TP 50 USDCAD: Buy 1.4385 SL 20 TP 50 XAUUSD: Consolidating below 2655, potential break out to upside, to 2672
TVC:DXY
by JinDao_Tai
EUR/USD Bearish - FOMC Release!EUR/USD trades near 1.0320 after dipping to a low of 1.0275, with recent price action reflecting a prevailing bearish sentiment driven by employment data, a cautious Federal Reserve, and concerns over potential tariff measures by President-elect Donald Trump. Technical indicators on the daily chart show accelerated declines in negative territory, suggesting the likelihood of further downside movement. In the short term, the bearish outlook remains intact as EUR/USD continues trading below all its key moving averages. The 20-period SMA has lost bullish momentum, positioning below longer-term SMAs and confirming persistent selling pressure. Meanwhile, technical indicators maintain a negative slope, signaling further potential losses. The pair experienced a sharp drop ahead of key US economic data amid reports that Trump might declare a national economic emergency to implement a broad tariff program. Despite holding near session lows, EUR/USD showed little reaction to the ADP Employment Report, which revealed that the US private sector added 122K jobs in December, below expectations of 140K. Additionally, Initial Jobless Claims for the week ending January 3 came in at 201K, better than the expected 218K but lower than the previous 211K, with no significant impact on the pair’s price. The Federal Open Market Committee (FOMC) decided to reduce the target range for the federal funds rate by 25 basis points, bringing it to 4.25-4.5%. The decision was made in response to economic data showing solid expansion in economic activity, a labor market displaying slight easing signals, and inflation still above the 2% target. Although some Committee members considered keeping the rate unchanged as a valid option, the majority agreed that further easing was necessary to support the economy and continue reducing inflation toward the established target. From an economic standpoint, real GDP continued to grow at a sustained pace in the fourth quarter of 2024. Inflation, as measured by the PCE (personal consumption expenditures) price index, slowed compared to the levels recorded in the previous year, though it remained elevated. Employment data indicated an increase in the unemployment rate to 4.2%, with a slight decline in labor force participation. International indicators pointed to a slowdown in economic growth across several advanced economies and declining inflation, mainly due to lower energy prices. From a financial market perspective, the Committee observed a degree of stability in money markets and short-term funding conditions, despite high political and economic uncertainty. Long-term Treasury yields remained stable, while the dollar appreciated against major foreign currencies, reflecting expectations of diverging monetary policies between the United States and other advanced economies. The Committee also discussed the future path of monetary policy, indicating that if data continued to show declining inflation and an economy near full employment, it might be appropriate to further slow the pace of monetary policy interventions. However, members emphasized the need to maintain a cautious approach, considering both upside and downside risks to inflation and economic activity. Key risks highlighted included potential changes in trade and immigration policies, as well as possible geopolitical tensions that could impact global supply chains. Finally, it was decided to proceed with the process of reducing the Federal Reserve's holdings of Treasury securities and mortgage-backed securities (MBS), maintaining a monthly cap on reinvestment of principal payments.
Short
by Forex48_TradingAcademy
1
USDJPY: Channel Up extending its 2nd bullish wave.USDJPY continues to trade on an highly bullish 1D technical outlook (RSI = 66.571, MACD = 1.090, ADX = 47.294) as today made a new high inside the 4 month Channel Up. It is on its 2nd bullish wave and it has started its 2nd stage, as it crossed above the 0.382 Fibonacci level, much like the previous bullish wave on October 21st. Aim for the 0 Fib near the top of the Channel (TP = 164.000) ## If you like our free content follow our profile to get more daily ideas. ## ## Comments and likes are greatly appreciated. ##
Long
by InvestingScope
USD/JPY: Continuation Pattern in Focus?The USD/JPY pair is currently in a significant uptrend on the daily chart, characterised by a series of rising highs and lows. Following a marked upward movement, the price has entered a consolidation phase, indicating a temporary pause before potentially resuming its directional trajectory. This sideways movement is often interpreted as preparation for a breakout, presenting an intriguing opportunity for attentive investors. Possible Buy Scenario Should the price manage to breach the resistance within the current consolidation range, approximately at the 158.00 level, it could signal a resumption of the uptrend in the coming days. A daily close above this resistance would strongly indicate a continuation of the upward momentum, with a target set around the 161.75 region (approximately 350 pips). This target marks the next significant resistance zone on the chart and represents the highest price observed in recent years, largely attributed to the Bank of Japan's decision to maintain very low interest rates, leading to a considerable depreciation of the Yen. In this scenario, an effective risk management strategy could involve placing a stop loss just below the low of the consolidation range, around 155.80 (approximately 250 pips), to protect against potential false breakouts. Alternative Sell Scenario Conversely, if the price fails to break through the resistance and instead falls below the consolidation level at 155.80, this could signal a possible reversal or a deeper correction. Under these circumstances, the USD/JPY might seek lower support, such as the 151.50 region, which aligns with a previous support zone on the chart. This scenario would indicate a shift in market behaviour, potentially influenced by macroeconomic events or fundamental data that could impact risk appetite. In summary Investors should closely monitor macroeconomic developments, including US employment data, speeches from Federal Reserve officials, and geopolitical events, as these can introduce volatility into the pair. Paying attention to price behaviour within the consolidation range will be crucial in determining which of the outlined scenarios is most likely to materialise. Disclaimer 74.2% of retail investor accounts lose money when trading CFDs with this provider. Consider whether you understand how CFDs work and if you can afford the high risk of losing your money. Past performance is not indicative of future results. Investment values may fluctuate, and you may not recover your initial investment. This content is not intended for residents of the UK.
Long
by Marketscom
Dollar vs. Yen - Long Term Swing Trading Idea - 08-th Jan 25'USDJPY from 20-th Dec' 2024 to 6-th Jan 2025 created A-B-C-D-E formation which is 4-th wave. Then from 156.25 area till 158.55 created 5 waves and finished the trend. Our expectations for the next few days are the price to retrace at least 250 pips till zone of 156.00 and there will find support. Long term idea is to reach 153.00 level in period of one month. EURUSD is at weakest and creating a swing low at levels over 1.0250-1.0300. If EURUSD bounce back to 1.0600 that will confirm the USDJPY trading idea for weaker dollar in next few weeks. Trading idea parameters are as follows. Entry: 158.50 Stop 159.50 Target 153.20
Short
by TradingTie
4
Yen Struggles as Investors Question BoJ's Rate Hike ProspectsThroughout the first half of the European trading session on Monday, the Japanese Yen continues to struggle against the US Dollar, with the exchange rate slipping to 0.006436 as I write this article. Investor skepticism regarding the Bank of Japan's (BoJ) potential for further interest rate hikes plays a significant role in this downward trend. This uncertainty, combined with an overall positive market sentiment, is putting pressure on the traditionally safe-haven Yen. Moreover, the recent widening of the yield gap between US and Japanese government bonds—intensified by the Federal Reserve's hawkish stance—further contributes to the Yen's decline. As the Fed signals a more aggressive monetary policy, the lower-yielding Yen becomes less attractive to investors. In terms of market outlook, we are anticipating a continuation of this bearish trend for the Yen against the Dollar. USD/JPY Previous Idea as reference: ✅ Please share your thoughts about JPY in the comments section below and HIT LIKE if you appreciate my analysis. Don't forget to FOLLOW ME; you will help us a lot with this small contribution.
CME:6J1!Short
by FOREXN1
1
USD/JPY Poised for a Breather Before Resuming Its AscentUSD/JPY: A Strategic Pause Before the Next Bullish Wave The USD/JPY currency pair is taking a breather, consolidating after a period of robust growth. This pause comes as a natural result of market dynamics, offering traders an opportunity to reflect on the underlying forces shaping the pair’s trajectory. The strengthening U.S. dollar, supported by a resilient economy and relatively hawkish monetary policy, contrasts sharply with the dovish stance of the Bank of Japan (BoJ). This divergence in central bank approaches creates a fertile environment for medium-term bullish potential in the USD/JPY pair. Over the past year, the currency pair has experienced a rollercoaster ride. A sharp decline in 2022 was fueled by aggressive rate cuts in the United States, a slight tightening move by the BoJ, and interventionist measures from Japan’s central bank aimed at stabilizing the yen. However, these interventions proved largely ineffective in altering the broader trend. The USD/JPY pair eventually reversed its course, erasing nearly all of its losses and climbing back toward the significant 162.0 level—a testament to the enduring strength of the dollar and the yen's continued weakness. Currently, the market is in a consolidation phase, with clear boundaries and well-defined levels emerging over the past several weeks. This phase serves as a critical juncture for traders, as it provides strong technical levels to guide trading strategies. Key Levels to Watch Resistance Level: 158.1 Support Levels: 156.74, 155.88 The primary trigger for a bullish continuation lies at the resistance level of 158.1. A decisive breakout above this level, accompanied by sustained price consolidation, would signal the market's readiness to push higher, potentially targeting all-time highs (ATH). However, traders should also prepare for the possibility of a temporary correction. Should the resistance hold, the currency pair may retrace toward the lower boundaries of the consolidation zone before resuming its upward momentum. Fundamental Context Driving USD/JPY The current landscape is shaped by stark differences in monetary policy between the U.S. Federal Reserve and the BoJ. While the Fed has maintained a relatively hawkish stance, keeping rates elevated to combat inflation, the BoJ has stuck to its ultra-loose monetary policy framework. Japan’s central bank continues to cap bond yields and resist significant tightening measures, prioritizing economic stability over currency strength. This divergence has amplified the appeal of the U.S. dollar against the yen, drawing capital flows into dollar-denominated assets and sustaining the bullish narrative for USD/JPY. Moreover, the broader macroeconomic environment supports the dollar's dominance. With robust labor market data, resilient GDP growth, and moderating inflation in the United States, the greenback remains a safe haven for investors navigating global uncertainties. In contrast, Japan's economy faces structural challenges, including stagnant wage growth and subdued consumer spending, further limiting the yen's recovery potential. Technical Outlook: Preparing for the Next Move From a technical perspective, the current consolidation is a healthy phase that sets the stage for the next significant move. Traders should closely monitor price action around the resistance at 158.1. A breakout above this level would open the door for an extended rally, with the psychological 162.0 level and beyond serving as potential targets. Conversely, failure to break resistance could lead to a retracement toward the support levels at 156.74 and 155.88. Such a pullback would not invalidate the bullish outlook but would instead offer a better entry point for those looking to capitalize on the broader upward trend. Trading Strategy For traders, patience and precision are key in navigating this phase. Those with a bullish bias should wait for confirmation of a breakout above 158.1, accompanied by increased volume and sustained consolidation. Meanwhile, a pullback to support levels could present an opportunity for value-based entries, provided the broader trend remains intact. Risk management remains paramount, as false breakouts and unexpected market shifts can occur in such volatile conditions. Conclusion The USD/JPY pair is at a crossroads, with consolidation serving as the calm before the next storm. The interplay between a strong dollar and a dovish BoJ creates a compelling case for further upside, but traders must remain vigilant and adaptable. Whether the pair breaks resistance or retraces to support, the medium-term outlook remains bullish, underpinned by both technical and fundamental factors. Stay prepared and disciplined, as the next leg of the journey toward new highs could be just around the corner.
Long
by lonelyPlayer0