USDJPY in Overbought Conditions - The 5th Wave Completed

27 Nov

USDJPY in Overbought Conditions - The 5th Wave Completed

🚨Thursday, December 19 - BoJ Interest Rate Decision


✅The market expects the BOJ to raise rates on December 19, as BOJ Governor Ueda commented last week.
Whether rates will be raised remains to be seen as they have lied several times on this subject in the past. However this is supporting JPY strength in the short-term.

USDJPY is currently in overbought conditions. The likelihood that USDJPY has completed a 5-wave movement is very high, with the top of the 5th wave appearing to be at 156.73. This 5th wave was completed as a variation of a wedge pattern.

Following any correction, USDJPY is expected to move down further in anticipation of the rate hike. If this happens, JPY might get a respite. However, we must be cautious, as the Bank of Japan (BOJ) is not always consistent in their promises and actions.

You may find more details in the chart!
Thank you and Good Luck!

29 Nov

Trade aktif

29 Nov

Catatan

USDJPY in a Clear Fall Anticipating BOJ Interest Rate Decision

From our previous analysis, USDJPY created a bullish correction up to 151.95 but couldn't manage to rise further.

Speculation about a potential rate hike by the Bank of Japan (BOJ) continues to increase. However, the primary reason for USDJPY's nearly 240-pip drop overnight was the BOJ's CPI data release. The BOJ reported an increase in the Tokyo Consumer Price Index (YoY) for November to 2.6% from 1.8%. Additionally, the Tokyo CPI excluding Food and Energy (YoY) for November rose to 2.2% from 1.8%.

These indicators heighten the chances of a rate hike at the upcoming BOJ meeting. Consequently, all XXXJPY pairs declined during the early hours of the European morning. The bearish wave may continue as the market anticipates the BOJ Interest Rate decision scheduled for Thursday, December 19