USD/JPY is making higher highs slowly but surely!
I don’t know if you’ve noticed, but USD/JPY recently broke out of a weeks-old consolidation level before making higher highs and higher lows on the 1-hour time frame.
why not? Expecting and then (still) hawkish confirmation by the Fed contrasted with the BOJ’s adherence to its current policies despite higher wages and consumer prices.
The divergence between the monetary policies of the Fed and the Bank of Japan gave buyers confidence in the market to buy more US Dollars against the Japanese Yen.
USD/JPY 1 Hour Forex Planned by TV
Since last week, the USD/JPY pair has risen from the lows of 139.00 to approach the 142.00 area.
In this setup, I am looking at the latest bounce from 141.70 levels.
141.70 coincides with the 61.8% Fibonacci correction of this week’s rise!
More importantly, it is close to the 100 SMA on the hourly chart as well as the trend line support that has not been broken since last week.
Unless Fed Governor Powell strongly recoils from the belief that “Almost all FOMC participants expect it will be appropriate to raise interest rates somewhat by the end of the year,Then the dollar could continue to rise against the yen.
USD/JPY, which is not far from the weekly opening prices, can extend the Fibonacci retracement and retest its previous highs near 142.40 if not the psychological level of 142.50.
I plan to place my stops just below the 100 SMA support area and trendline, and I would also consider expanding if USD/JPY looks like it has enough momentum to reach R1 (142.84) from the standard pivot points.
what do you think? Will we see new monthly highs for the USD/JPY in the upcoming trading sessions?
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