USD/JPY is slowly however steadily making larger highs!

I don’t know in the event you observed, however USD/JPY not too long ago broke above a weeks-long consolidation earlier than making larger highs and better lows on the 1-hour timeframe.

And why not? Anticipation after which affirmation of a (nonetheless) hawkish Fed contrasted with the Financial institution of Japan (BOJ) sticking to its present insurance policies regardless of larger wages and client costs.

The disparity between the Fed and the BOJ’s financial insurance policies gave market bulls the arrogance to purchase extra USD in opposition to JPY.

USD/JPY 1-hour Foreign exchange Chart by TV

Since final week, USD/JPY has climbed from its 139.00 lows to commerce nearer to the 142.00 space.

On this setup, I’m the latest bounce from the 141.70 ranges.

141.70 coincides with the 61.8% Fibonacci retracement of this week’s upswing!

Extra importantly, it’s near the 1-hour chart’s 100 SMA in addition to a development line assist that hasn’t been damaged since final week.

Except Fed Governor Powell wildly backtracks from believing that “Practically all FOMC contributors count on that it will likely be acceptable to boost rates of interest considerably additional by the tip of the yr,” then the greenback may proceed to realize in opposition to the yen.

USD/JPY, which isn’t too removed from its weekly open costs, may prolong its Fibonacci bounce and retest its earlier highs close to 142.40 if not the 142.50 psychological stage.

I’m planning on putting my stops slightly below the 100 SMA and development line assist zone and also will take into account scaling up if USD/JPY seems to be prefer it has sufficient momentum to hit the R1 (142.84) of the Customary Pivot Factors.

What do you assume? Will we see new month-to-month highs for USD/JPY within the subsequent buying and selling periods?

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