USD/JPY Pullback is inevitable
Current Situation: USD/JPY has been in a strong downtrend, evidenced by the consistent lower highs and lower lows, but it is now showing signs of a potential retracement. The pair is moving towards a demand zone around 141.764, which aligns with potential buying pressure that could trigger a bounce in the near term. As we can see on the 4HR a possible target for a pullback would be the 0.618 Fib level.
Meanwhile, the DXY (U.S. Dollar Index) is showing signs of retesting the 101.320 resistance.
Additionally DXY 4HR chart is already in an uptrend and looking to grow to 0.618 FIB level.
USD/JPY is currently consolidating in the a recent supply zone, it is also possibly looking to retest the supply zone around 144.000.
With momentum growing on the DXY I would be cautious taking any short positions at the moment.
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