Fundamental Overview
The bullish momentum in USDJPY is slowing down, even with recent strong US CPI and PPI reports. The market now aligns closely with the Fed’s projections, reducing expectations for aggressive rate cuts.
More strong US data is needed to hint at a pause in the Fed’s easing cycle and to support the US Dollar further.
US long-term yields are expected to rise, which should maintain the uptrend in USDJPY. However, bullish catalysts for the Dollar would encourage more buyers. Key events to watch for in November include October data and the US election.
USDJPY Technical Analysis – Daily Timeframe
The daily chart shows USDJPY briefly exceeding the key level of 149.40 but unable to maintain it. Sellers may target a drop back to 147.22, while buyers are looking for a rally above this swing level towards 152.00.
USDJPY Technical Analysis – 4 Hour Timeframe
The 4-hour chart indicates a rising wedge near the 150.00 level. Sellers will look for a downside break, while buyers might find support at the lower trendline for a potential rally.
USDJPY Technical Analysis – 1 Hour Timeframe
The 1-hour chart reveals price action within the same pattern. Sellers desire a break to the downside, while buyers hope for a bounce off the lower trendline. The red lines indicate today’s average daily range.
Upcoming Catalysts
This week has limited economic data, with US Retail Sales and Jobless Claims on Thursday and Japanese CPI on Friday.
See the video below
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