USDJPY: Correction before dropping to 153.00-152.00
Updated
Hello everyone, Ben here!
USDJPY has yet to resume its upward trend. Rumors about potential actions from the Bank of Japan (BoJ) are beginning to surface. Meanwhile, the US dollar continues to gain strength.
The 158.46 level represents a strong resistance zone established by the sellers. Strong expectations for an additional interest rate hike by the BoJ this week are also lending support to the JPY. Overall, this influence appears relatively weak but could still provide significant backing for this currency pair.
In theory, any upward movement of this major pair might be limited due to trade policy risks from the soon-to-be-inaugurated US President Donald Trump, which have constrained any significant bullish moves for the safe-haven JPY.
The focus this week will be on Trump’s inauguration speech on Monday and the highly anticipated two-day BoJ policy meeting beginning on Thursday.
From a technical standpoint, the price is attempting to break out of a major range and test key support levels. A false breakout around the 156.56 level could lead to the price targeting newly formed resistance zones. However, if the price settles below 156.56 or even drops under 155.95, it could trigger strong selling pressure sooner than expected.
Best regards, Bentradegold!
USDJPY has yet to resume its upward trend. Rumors about potential actions from the Bank of Japan (BoJ) are beginning to surface. Meanwhile, the US dollar continues to gain strength.
The 158.46 level represents a strong resistance zone established by the sellers. Strong expectations for an additional interest rate hike by the BoJ this week are also lending support to the JPY. Overall, this influence appears relatively weak but could still provide significant backing for this currency pair.
In theory, any upward movement of this major pair might be limited due to trade policy risks from the soon-to-be-inaugurated US President Donald Trump, which have constrained any significant bullish moves for the safe-haven JPY.
The focus this week will be on Trump’s inauguration speech on Monday and the highly anticipated two-day BoJ policy meeting beginning on Thursday.
From a technical standpoint, the price is attempting to break out of a major range and test key support levels. A false breakout around the 156.56 level could lead to the price targeting newly formed resistance zones. However, if the price settles below 156.56 or even drops under 155.95, it could trigger strong selling pressure sooner than expected.
Best regards, Bentradegold!
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