USD/JPY: Bullish Momentum Continues Amidst Shifting Market
USD/JPY: Bullish Momentum Continues Amidst Shifting Market Sentiments
In the early European session, the Japanese Yen remains on a downward trajectory against the USD, as investors recalibrate their expectations regarding the Bank of Japan's (BoJ) policy stance. The prevailing risk-on environment, coupled with the USD's renewed strength, contributes to the ongoing decline of the safe-haven JPY. Additionally, the positive momentum for the USD is fueled by a recent CPI report and a rebound from the Fair Value Gap (FVG) liquidity-taking area, setting the stage for a bullish rally.
Technical Analysis and Bullish Momentum:
The USD/JPY price, after extracting liquidity from the FVG Fair Value Gap between the 144.500 and 142.500 areas, experienced a robust rebound, sustaining its bullish rally. The USD's renewed strength, amplified by a positive CPI report, played a crucial role in reversing the JPY's downward pressure, leading to a solid recovery. The price remains positioned above the 200 SMA and within a bullish channel, indicating a positive trend. The analysis signals a potential continuation of the upward momentum, with targets set at the 78.60% Fibonacci retracement level from the recent swing high and low.
Market Drivers and Catalysts:
The prevailing risk-on sentiment, coupled with the optimistic market outlook, contributes to the JPY's decline against the USD. Investors are adjusting their expectations for the BoJ's policy stance, aligning with the broader market sentiments. The USD gains additional traction, supported by positive economic indicators, including a recent CPI report, further reinforcing the bullish narrative.
Conclusion:
As USD/JPY maintains its upward trajectory, fueled by shifting market sentiments and positive economic indicators, traders are eyeing a potential continuation of the bullish momentum. The technical analysis supports a long position, with Fibonacci retracement levels serving as key targets. However, market participants should remain vigilant, considering potential reversals and external factors that may impact the currency pair's dynamics.
Our preference
Long positions targets at 149.75 & 150.75 in extension.
In the early European session, the Japanese Yen remains on a downward trajectory against the USD, as investors recalibrate their expectations regarding the Bank of Japan's (BoJ) policy stance. The prevailing risk-on environment, coupled with the USD's renewed strength, contributes to the ongoing decline of the safe-haven JPY. Additionally, the positive momentum for the USD is fueled by a recent CPI report and a rebound from the Fair Value Gap (FVG) liquidity-taking area, setting the stage for a bullish rally.
Technical Analysis and Bullish Momentum:
The USD/JPY price, after extracting liquidity from the FVG Fair Value Gap between the 144.500 and 142.500 areas, experienced a robust rebound, sustaining its bullish rally. The USD's renewed strength, amplified by a positive CPI report, played a crucial role in reversing the JPY's downward pressure, leading to a solid recovery. The price remains positioned above the 200 SMA and within a bullish channel, indicating a positive trend. The analysis signals a potential continuation of the upward momentum, with targets set at the 78.60% Fibonacci retracement level from the recent swing high and low.
Market Drivers and Catalysts:
The prevailing risk-on sentiment, coupled with the optimistic market outlook, contributes to the JPY's decline against the USD. Investors are adjusting their expectations for the BoJ's policy stance, aligning with the broader market sentiments. The USD gains additional traction, supported by positive economic indicators, including a recent CPI report, further reinforcing the bullish narrative.
Conclusion:
As USD/JPY maintains its upward trajectory, fueled by shifting market sentiments and positive economic indicators, traders are eyeing a potential continuation of the bullish momentum. The technical analysis supports a long position, with Fibonacci retracement levels serving as key targets. However, market participants should remain vigilant, considering potential reversals and external factors that may impact the currency pair's dynamics.
Our preference
Long positions targets at 149.75 & 150.75 in extension.
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