What’s Next USD/JPY?

Overview

1D view sentiment shifting from positive to negative sparked by BOJ indicating end to negative rate policy, coupled by US rate cuts expectations for next year.

Market expects BOJ action in 1H:2024.

However 1D support at 141.6 appears to be holding.

Forecast

If 141.6 continues to hold and we get 2 to 3 additional oversold momentum retests as seen around Nov 2022 followed by HH and HL with an overbought pierce, these would confirm a solid support for next phase of uptrend.

Entry near 40 percent momentum is the way to maximize trade profits.

Price Chart