USD/JPY Market Sentiment & Technical Forecast
In our last analysis, we showed how the USD/JPY pair presented a bearish narrative, continuously trading within a descending channel pattern. The crucial moment came when the price broke out of that channel and moved to the upside, retesting its last lower highs at 143.00 and 144.00, retesting and establishing them as a new support zones, which is a significant indication of the pair's current state.
Technical Observations:
The recent break of the bearish trendline might indicate a trend reversal on the 1H, 2H, 4H timeframes. As the pair is starting to break prior resistances and moving to the upside, it is ganging buy volume and momentum. USD/JPY’is currently trying to break the 145.00 resistance. The pair still has a bearish outlook on the higher timeframes, but any break above 146.00 could flip the view to bullish, eyeing the 149.000 mark. However, for that we would need to see a confirmation and strong break to the upside with growing volume.
Market Considerations:
We are currently looking for some buys, yet we are vigilant of potential market shifts triggered by the upcoming CPI report as the sentiment can change rather quickly.
Strategic Approach:
Our strategy is one of cautious observation while searching for buy opportunities considering the confluence of economic reports and technicals. We advise a prudent yet agile stance, prepared to engage with the market's evolving narrative.
In our last analysis, we showed how the USD/JPY pair presented a bearish narrative, continuously trading within a descending channel pattern. The crucial moment came when the price broke out of that channel and moved to the upside, retesting its last lower highs at 143.00 and 144.00, retesting and establishing them as a new support zones, which is a significant indication of the pair's current state.
Technical Observations:
The recent break of the bearish trendline might indicate a trend reversal on the 1H, 2H, 4H timeframes. As the pair is starting to break prior resistances and moving to the upside, it is ganging buy volume and momentum. USD/JPY’is currently trying to break the 145.00 resistance. The pair still has a bearish outlook on the higher timeframes, but any break above 146.00 could flip the view to bullish, eyeing the 149.000 mark. However, for that we would need to see a confirmation and strong break to the upside with growing volume.
Market Considerations:
We are currently looking for some buys, yet we are vigilant of potential market shifts triggered by the upcoming CPI report as the sentiment can change rather quickly.
Strategic Approach:
Our strategy is one of cautious observation while searching for buy opportunities considering the confluence of economic reports and technicals. We advise a prudent yet agile stance, prepared to engage with the market's evolving narrative.