USD/JPY Eyes Bullish Impulse on Japan's Economic Signals

USD/JPY Eyes Bullish Impulse on Japan's Economic Signals

Recent data from Japan indicates progress in achieving sustained inflation, sparking speculation of a possible shift in the Bank of Japan's (BoJ) ultra-dovish policy in the early months of 2024. This contrasts with the belief among investors that the Federal Reserve (Fed) has concluded its rate hikes and might initiate a policy easing as early as March 2024.

In line with our analysis from yesterday, the USD/JPY appears to be leveraging a new bullish impulse, particularly given its negative correlation with the EUR/USD, which is currently facing bearish pressure. During the Asian session, the price retraced to the 61.8% Fibonacci level from the recent low, creating a potential setup for a new bullish movement in the pair.


Our Preference:

Above 147.500 look for further upside with 150.30 & 151.50 as targets.