USDJPY looks poised for further upside following a period of consolidation and a successful retest of strong support around the 140.50 level. The weekly chart reveals a clear triple bottom pattern, reinforcing the strength of this support zone and suggesting renewed bullish momentum.
The US Dollar is starting to regain strength after a period of weakness, supported by improving U.S. economic data, sticky inflation, and a less dovish stance from the Federal Reserve. In contrast, Japan is unlikely to change its ultra-loose monetary policy in the near term, keeping rate differentials wide and favoring a stronger Dollar.
With the Bank of Japan expected to hold rates steady for the foreseeable future, capital is likely to continue flowing out of the yen. Carry trade flows remain intact, adding to the upward pressure on USDJPY.
Momentum indicators are turning higher, and price action is forming a steady base for another leg up. The market could target the 150 zone in the coming weeks, where the 50-week moving average may act as initial resistance.
As long as 140.50 holds, dips could offer attractive buying opportunities. A sustained move above 145.00 could trigger fresh bullish momentum and accelerate gains.
The US Dollar is starting to regain strength after a period of weakness, supported by improving U.S. economic data, sticky inflation, and a less dovish stance from the Federal Reserve. In contrast, Japan is unlikely to change its ultra-loose monetary policy in the near term, keeping rate differentials wide and favoring a stronger Dollar.
With the Bank of Japan expected to hold rates steady for the foreseeable future, capital is likely to continue flowing out of the yen. Carry trade flows remain intact, adding to the upward pressure on USDJPY.
Momentum indicators are turning higher, and price action is forming a steady base for another leg up. The market could target the 150 zone in the coming weeks, where the 50-week moving average may act as initial resistance.
As long as 140.50 holds, dips could offer attractive buying opportunities. A sustained move above 145.00 could trigger fresh bullish momentum and accelerate gains.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.