USDJPY in Overbought Conditions - The 5th Wave Completed
🚨Thursday, December 19 - BoJ Interest Rate Decision
âś…The market expects the BOJ to raise rates on December 19, as BOJ Governor Ueda commented last week.
Whether rates will be raised remains to be seen as they have lied several times on this subject in the past. However this is supporting JPY strength in the short-term.
USDJPY is currently in overbought conditions. The likelihood that USDJPY has completed a 5-wave movement is very high, with the top of the 5th wave appearing to be at 156.73. This 5th wave was completed as a variation of a wedge pattern.
Following any correction, USDJPY is expected to move down further in anticipation of the rate hike. If this happens, JPY might get a respite. However, we must be cautious, as the Bank of Japan (BOJ) is not always consistent in their promises and actions.
You may find more details in the chart!
Thank you and Good Luck!