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The USDJPY has been extremely bullish after breaking out of a daily wedge formation.
The breakout was on the back of the fundamentals of diverging monetary policy from the FED and BOJ. The Fed of course looking to raise rates and the BOJ looking to adjust inflation via easing.
In recent news events, the market has gotten the impression that both central banks are changing their stance a bit within one week. Where the monetary policy are still diverging, they are now looking to move the opposite direction.
USDJPY to start the week is looking to make a break of 107.35. This is a key level that can open up the downside. It is the 200 period MA on the 4H chart, as well as previous resistance as indicated on the left side of the chart below, and a clear break of the sideways channel.
If we get a 4H break below this key level, I'll be looking to take a short position in this pair for the contest. If not specifically USDJPY, perhaps one of the other JPY pairs.
The breakout was on the back of the fundamentals of diverging monetary policy from the FED and BOJ. The Fed of course looking to raise rates and the BOJ looking to adjust inflation via easing.
In recent news events, the market has gotten the impression that both central banks are changing their stance a bit within one week. Where the monetary policy are still diverging, they are now looking to move the opposite direction.
USDJPY to start the week is looking to make a break of 107.35. This is a key level that can open up the downside. It is the 200 period MA on the 4H chart, as well as previous resistance as indicated on the left side of the chart below, and a clear break of the sideways channel.
If we get a 4H break below this key level, I'll be looking to take a short position in this pair for the contest. If not specifically USDJPY, perhaps one of the other JPY pairs.
