The earthquake earlier this year would have prompted the Bank of Japan to revise its actions regarding the ongoing ultra-loose monetary policy. Although today's positive PPI print was good news for the JPY, it was overshadowed by the USD narrative switch. In the wake of the ongoing Middle East conflict, we may continue to witness the USD strengthening over the near term.
The dollar's momentum, after reaching USDJPY 144.35 toward the end of last week, has pushed the JPY onto the back foot. The recent break of structure at price 146.42 may lead to the JPY pulling back toward the 145.80 - 146.03 range, supported by the oversold nature of the Stochastics and RSI. Subsequently, it may lose ground to Fibonacci levels 61.8% (147.47) and 78.6% (149.42) within this week, aligning with the rate cycle narrative.
The dollar's momentum, after reaching USDJPY 144.35 toward the end of last week, has pushed the JPY onto the back foot. The recent break of structure at price 146.42 may lead to the JPY pulling back toward the 145.80 - 146.03 range, supported by the oversold nature of the Stochastics and RSI. Subsequently, it may lose ground to Fibonacci levels 61.8% (147.47) and 78.6% (149.42) within this week, aligning with the rate cycle narrative.
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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.