USD/JPY holds bullish tone despite BoJ rate hike
|Despite the BOJ rate hike on Friday, USDJPY is still showing a bullish structure. This may also be linked to expectations that US yields can remain supported, as odds for Fed cuts have increased after US inflation softened and the unemployment rate moved higher, based on last week’s data.
Looking at the near-term structure on USDJPY, price action suggests an ongoing bullish setup that could take the market higher after a short-term setback. The recent move looks extended and fits well with a third wave, so after a wave four pause we could see another push towards the 158 area. Near-term support for this week sits around 156.95, while the short-term invalidation level is at 155.98.
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