USD/JPY: Possible comeback in the near term; sell rallies are preferable
USD/JPY: Possible comeback in the near term; sell rallies are preferable
There is a positive outlook for the USD/JPY pair in the near future.
On the daily chart, the weak negative momentum is beginning to fade, while the relative strength index (RSI) is rising. In the short term, the risks are skewed favourable. The resistance levels are 145.40 (50 DMA) and 146.10 respectively. Support occurs at levels of 142.20.”
This week, there is a possibility that USD risks (FOMC minutes, Core PCE) will continue to unwind, which will result in USD/JPY upside risks in the short term. We are looking for a surge that will again fade into. We keep an eye on the Tokyo CPI, IP, and retail sales statistics every Friday. The latest rally ought to be slowed down by data that is hotter than anticipated. It is possible that the timing of the normalization of BoJ policy would be delayed; nonetheless, the normalization of policy will not be derailed.
