USD/JPY: Squeeze continues – OCBC
|USD/JPY built on momentum to trade higher. Another round of rebound in USD, following market disappointment with Fed outcome was the latest trigger to fuel the upmove. Pair was last at 149.66, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Upside risks ahead
"Earlier, the upside surprise in Tokyo CPI and some political uncertainty (decline in approval rating for Ishiba’s cabinet per Jiji poll of 20.8% 2 weeks ago) were the catalysts.
"Daily momentum is mild bullish while the rise in RSI moderated. Upside risks ahead. Resistance at 149.70 (200 DMA, 50% fibo retracement of 2025 high to low), 151.70 (61.8% fibo). Support at 147.10/40 levels (21 DMA, 38.2% fibo), 145.60/70 levels (50, 100 DMAs)."
"Political uncertainty (referring to PM Ishiba’s political career/ LDP leadership), credit rating concerns (dependent on fiscal health) and carry allure remains supportive of USD/JPY while 'sell USD' trade momentum takes a back seat for now."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.