Our trade relies on fundamental analysis, and technical analysis only serves as our entry point.
Currently, the US is undergoing a process of quantitative tightening. The upcoming FOMC meeting is expected to result in a 25 basis point rate increase.
A rate increase of 50 basis points or continued rate hikes would be seen as a hawkish signal.
Meanwhile, Japan is maintaining its monetary easing policy, and the new BOJ governor, Ueda, announced in a recent speech that they plan to slowly continue their yield curve control to support a healthy economy.
This has led us to take a long-term dovish stance on the JPY.
Shifting our focus to the technical analysis,
We are currently awaiting a retracement to the 61% Fibonacci level.
However, we should remain vigilant as there is a possibility that the price may reject the 134.78 level.
We are also waiting to retest the trend line and the demand zone.
Currently, the US is undergoing a process of quantitative tightening. The upcoming FOMC meeting is expected to result in a 25 basis point rate increase.
A rate increase of 50 basis points or continued rate hikes would be seen as a hawkish signal.
Meanwhile, Japan is maintaining its monetary easing policy, and the new BOJ governor, Ueda, announced in a recent speech that they plan to slowly continue their yield curve control to support a healthy economy.
This has led us to take a long-term dovish stance on the JPY.
Shifting our focus to the technical analysis,
We are currently awaiting a retracement to the 61% Fibonacci level.
However, we should remain vigilant as there is a possibility that the price may reject the 134.78 level.
We are also waiting to retest the trend line and the demand zone.
