USDJPY bulls want to believe in BoJ’s defense of easy money poli

16 thg 6, 2023

Be it the triangle breakout or the Bank of Japan (BoJ) officials’ dovish signals ahead of the monetary policy announcements, not to forget the Fed’s hawkish pause, the USDJPY pair has all that’s needed to ride north. However, the overbought RSI conditions suggest a gradual run-up with intermediate pullbacks. That said, the aforementioned two-week-old symmetrical triangle’s top line, close to 140.20, appears immediate support for the Yen pair. Following that, the 140.00 round figure and the stated triangle’s bottom line surrounding 139.00 can challenge the pair sellers. It’s worth noting that the buyers are likely to remain unshaken beyond the 200-SMA support of 138.00, a break of which could give rise to short-term setbacks for the optimists.

Meanwhile, the 141.00 round figure precedes the latest peak of around 141.50 to guard the immediate upside of the USDJPY pair during its fresh rebound. In a case where the BoJ manages to defend the policy doves, the 61.8% Fibonacci Expansion (FE) of its May 16 to June 01 moves, near 141.70, precedes the 142.00 threshold and the 78.6% FE level around 142.55 to challenge the Yen pair bulls. Above all, an upward-sloping support resistance line from early May, at 143.00 by the press time, seems a tough nut to crack for the buyers to crack.