USD/JPY pair demonstrates resilience, finding support at the critical level of 153.60
The USD/JPY pair demonstrates resilience, finding support at the critical level of 153.60, coinciding with the 20-day Moving Average, amidst market de-risking. A doji candle on the daily chart indicates trader indecision, potentially signaling equilibrium between buyers and sellers after uncertainty. Technically, the pair trades within an ascending channel, supported by positive Momentum and RSI indicators. Breach above psychological resistance at 155 could lead to further gains, with Fibonacci extension levels at 155.50 as the next target. Fundamentally, remarks from IMF Japan mission chief and BoJ Governor Ueda introduce factors influencing the yen's medium-term outlook. Market sentiment is cautiously optimistic, driven by strong technical position and ongoing bullish momentum, tempered by uncertainty surrounding BoJ's signaling and Fed policy.
USD/JPY exhibits resilience, supported by critical support at 153.60 amid market de-risking, as indicated by a doji candle suggesting trader indecision.
Trading within an ascending channel, the pair showcases robust uptrend, with positive Momentum and RSI indicators. Breach above psychological resistance at 155 could lead to further gains, targeting Fibonacci extension levels at 155.50.
Remarks from IMF Japan mission chief and BoJ Governor Ueda introduce factors influencing yen's medium-term outlook, potentially benefiting Japan's economy but also hinting at possible rate hikes due to yen-led inflation, affecting currency volatility.
Cautiously optimistic sentiment prevails, driven by strong technical position and ongoing bullish momentum. However, uncertainty surrounding BoJ's signaling and Fed policy leads to a substantial neutral stance, with limited yet present negative sentiment due to intervention possibilities and potential shifts in U.S. monetary policy.