On the JPY side, we got
some disappointing wage growth figures on Monday and the US-Japan negotiations
don’t look to be going well. As a reminder, the BoJ continues to place a great
deal on the US-Japan trade deal before looking at adjusting rates. So, negative
news on the trade front erodes the hopes for another rate hike by year-end. If the price gets there, we can
expect the sellers to step in with a defined risk above the resistance to
position for a drop back into the 142.35 support. The buyers, on the other
hand, will look for a break higher to increase the bullish bets into the 151.19
level next. The buyers will likely continue to lean on the
trendline with a defined risk below it to keep pushing into new highs, while the
sellers will look for a break lower to pile in for a drop back into the 144.35 zone.
USDJPY Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, we can
see that we have a minor resistance zone around the 146.50 level. This is where
we can expect the sellers to step in to target a break below the trendline,
while the buyers will look for a break higher to increase the bullish bets into
the 148.28 level next
