Currently, USDJPY continues to trade steadily at levels above the 1D ascending channel.
Looking ahead: We expect the interest rate differential between the US and Japan to narrow, which along with other factors should support the JPY.
In contrast the Fed is expected to cut as soon as June, with a probability of 69.9% rates will come down in that month, according to the CME FedWatch tool.
On the new outlook for USDJPY: On the 1D chart, USDJPY is currently receiving strong support from the previous breakout zone around 151.00. A false break below this level could test local support levels before moving further. Because basically, it is still well supported by an upward channel full of positive prospects. The immediate medium-term target is 155.00.
If we look closely we can see that: technically, the price is still well supported. Break of the 152.00 resistance signals a continuation of the uptrend
Good analysis! Bullish channel + above moving average is usually a good sign of bullish momentum. I suspect prices are above the Ichimoku cloud too. Nice to see you buying on the pullback. Let's see how this plays out!
RalphBenjaminTrading
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@VantageMarkets, Yes. I also hope everything happens in the right order. Thank you. Best regards